Shang Hai Zheng Quan Bao·2025-09-16 19:02Core Viewpoint - Zhejiang New Energy Investment Group Co., Ltd. (referred to as "the company") announces that its subsidiary, Zhejiang Shanxi Water Conservancy and Hydropower Development Co., Ltd. (referred to as "Shanxi Water Conservancy"), plans to issue public infrastructure REITs based on operational assets such as the Shanxi Reservoir and power station, with the company participating as an original equity holder [2][3]. Group 1: Transaction Details - The transaction involves Shanxi Water Conservancy issuing public infrastructure REITs with the company and its affiliate Qianjiang Water Development Co., Ltd. intending to subscribe for a certain amount of fund shares [2][3]. - The board of directors and senior management of the company hold positions in Qianjiang Water, establishing an associated relationship, thus classifying this transaction as a related party transaction [2][3]. - The transaction has been approved by the company's independent directors and board meetings, confirming it does not constitute a major asset restructuring as per relevant regulations [2][3][19]. Group 2: REITs Project Plan - The REITs project aims to revitalize existing assets, improve capital structure, and enhance project compliance, with an estimated asset valuation of approximately 3 billion yuan (30.04 billion) and a proposed issuance scale of 2.474 billion yuan [5][6]. - The underlying assets include the Shanxi Reservoir, which has a total capacity of 1.824 billion cubic meters and an installed capacity of 222,000 kilowatts, generating an average annual power output of about 410 million kilowatt-hours [5][6]. - The REITs will have a 30-year term, with 80% of the shares intended for original equity holders and 20% for public investors [5][6]. Group 3: Related Party Transaction Overview - The company will subscribe for fund shares in the REITs, with the actual subscription ratio and amount to be determined by the final issuance plan [13][19]. - The transaction price for the fund shares will be based on the final project valuation and market inquiry results, ensuring fairness and reasonableness [18][19]. - The issuance of REITs is expected to help the company activate existing assets, generate asset disposal income, and enhance dividends, aligning with the company's interests and sustainable development goals [19][20]. Group 4: Approval Process - The independent directors have reviewed and approved the REITs issuance proposal, emphasizing its benefits for asset revitalization and shareholder interests [20][21]. - The board meeting also approved the company's participation in the REITs subscription and authorized management to handle related matters, subject to regulatory approvals [21]. Group 5: Future Steps - The REITs project is currently in the application stage, pending approval from relevant regulatory bodies, with the company committed to timely information disclosure as required by law [3][12][22].