Core Viewpoint - China Qinfa (00866) has entered into a coal supply agreement with Zhejiang Energy Asia Pacific, involving the sale of 150,000 tons of Indonesian thermal coal, which is expected to provide a stable revenue source due to the ongoing demand from Zhejiang Energy's state-owned power plants [1][2]. Group 1: Agreement Details - The agreement allows for a 10% adjustment in the base quantity of coal, with shipments scheduled to begin in November 2025 and concluding upon full delivery and payment [1]. - The coal will be shipped in two batches, each with a capacity of 75,000 tons, subject to the same 10% adjustment [1]. - The pricing mechanism for the coal is based on a formula involving the average of the Indonesian Coal Index (ICI2 and ICI3), adjusted for calorific value and quality, plus an additional $5 per ton [1]. Group 2: Strategic Implications - The decision to enter a shorter-term agreement, rather than the initially anticipated 20-year contract, was made to allow more time for evaluating annual production capacity [1]. - The agreement is considered fair and reasonable, aligning with the company's and shareholders' overall interests, as stated by the board of directors [2].
中国秦发附属与浙江能源亚太订立供煤协议