Baota Industry(SZ:000595) Zheng Quan Zhi Xing·2025-08-11 16:16Core Viewpoint - The announcement details the signing of a management entrustment agreement between Baota Industrial Co., Ltd. and its controlling shareholder Ningxia Guoyou Capital Operation Group Co., Ltd., which involves the management of several renewable energy projects to avoid competition issues [1][13]. Summary by Sections 1. Overview of Related Transactions - The management entrustment agreement allows Ningxia Guoyou to entrust its renewable energy projects to Baota Industrial and its wholly-owned subsidiary Ningxia Electric Power Investment New Energy Co., Ltd. The annual management fee for the entrusted projects is set at 1 million yuan [1][12]. 2. Basic Information of Related Parties - Ningxia Guoyou Capital Operation Group Co., Ltd. is a state-owned enterprise with a registered capital of 3 billion yuan, primarily engaged in investment and related businesses [2]. - Ningxia Electric Power Investment Group Co., Ltd. has a registered capital of approximately 2.24 billion yuan and focuses on investment in the power sector [3]. - Ningxia Electric Power Investment Co., Ltd. is a wholly-owned subsidiary of Ningxia Electric Power Investment Group, established in 2015, with total assets of approximately 255.4 million yuan as of the end of 2024 [4]. 3. Basic Information of Entrusted Projects - The entrusted projects include: - 51% equity of Ningguo Energy (Yanchi County) Co., Ltd., which owns a solar project with a capacity of 850,000 kW [6]. - 51% equity of Ningguo Energy (Zhongning) Co., Ltd., which owns a wind-solar hybrid project with a capacity of 1 million kW [7]. - 100% equity of Ningxia Electric Power Salt Lake New Energy Co., Ltd., which owns a 750 MW wind-solar hybrid project [9]. - 100% equity of Ningxia Electric Power Yongli (Zhongwei) New Energy Co., Ltd., which owns a 3 million kW solar base project [10]. 4. Pricing Policy and Basis for Related Transactions - The pricing for the management entrustment is based on fair and reasonable principles, with the management fee set at 1 million yuan per year for each entrusted project [12][13]. 5. Main Content of the Entrustment Agreement - The agreement outlines the rights and responsibilities of both parties, including management rights, supervision rights, and the ability to appoint directors and senior management for the entrusted companies [11][12]. 6. Purpose and Impact of the Related Transactions - The transaction aims to resolve competition issues between Ningxia Guoyou and the company, aligning with the interests of the company and all shareholders, without adversely affecting the company's financial status or operational results [13][14].