Core Viewpoint - The company Qinfa (00866) has entered into a coal supply agreement with Zhejiang Energy Asia Pacific, marking a strategic move to secure stable revenue from coal sales [1][2]. Group 1: Agreement Details - SDE, a non-wholly owned subsidiary of the company, will sell 150,000 metric tons of Indonesian thermal coal to Zhejiang Energy Asia Pacific [1]. - The agreement allows for a 10% adjustment in the base quantity, with shipments scheduled to commence in November 2025 [1]. - The coal will be delivered in two shipments of 75,000 metric tons each, with pricing based on a formula involving the Indonesian coal price index and adjustments for coal quality and calorific value [1]. Group 2: Strategic Implications - The initial expectation was for a 20-year supply agreement; however, the parties opted for a shorter-term agreement to allow for further evaluation of annual production capacity [2]. - The agreement is seen as a means to provide a stable income source due to the ongoing demand from Zhejiang Energy's state-owned power plants [2]. - The board of directors considers the terms of the agreement to be fair and reasonable, aligning with the company's and shareholders' overall interests [2].
中国秦发(00866)附属与浙江能源亚太订立供煤协议