Core Viewpoint - China National Petroleum Corporation (CNPC) plans to establish a joint venture company and acquire 100% equity of three gas storage companies to optimize its asset and business integration, promoting the stable operation and high-quality development of the natural gas industry chain [1][2][16]. Summary by Sections 1. Overview of the Transaction - CNPC's subsidiary, Taihu Investment, intends to establish three joint venture companies to acquire 100% equity of Xinjiang Oilfield Gas Storage Company, Xiangguansi Gas Storage Company, and Liaohe Oilfield Gas Storage Company, with respective investments of CNY 99.95 billion, CNY 170.66 billion, and CNY 129.55 billion [2][16]. 2. Transaction Approval - The transaction was approved unanimously by the board of directors, with no dissenting votes, and does not require shareholder approval as it does not constitute a major asset restructuring [2][3]. 3. Basic Information of Related Parties - Xinjiang Oil Management Bureau, Sichuan Oil Management Bureau, and Liaohe Oil Exploration Bureau are the related parties involved in the transaction, all being wholly-owned subsidiaries of CNPC [3][4][5]. 4. Financial Data of Target Companies - Financial data for the target companies as of December 31, 2024, includes: - Xinjiang Oilfield Gas Storage Company: Total assets of CNY 1,313.17 million, net profit of CNY 76.17 million [7]. - Xiangguansi Gas Storage Company: Total assets of CNY 796.42 million, net profit of CNY 44.04 million [9]. - Liaohe Oilfield Gas Storage Company: Total assets of CNY 1,442.18 million, net profit of CNY 65.59 million [12]. 5. Pricing and Valuation - The total valuation for the three gas storage companies is CNY 400.16 billion, based on independent third-party assessments [12][13]. 6. Purpose and Impact of the Transaction - The acquisition aims to enhance gas storage capacity, facilitating the natural gas sales and production balance, thereby maximizing the overall efficiency of the natural gas industry chain [16]. - Post-transaction, the three gas storage companies will be included in CNPC's consolidated financial statements, positively impacting the company's financial status and operational results [16].