Core Viewpoint - China Coalbed Methane Group Limited plans to sell 100% equity of Qingshui Shuntai Energy Development Co., Ltd. to Shanxi Shenggang Energy Co., Ltd. for a cash consideration of 24.6093 million yuan [1][3] Company Overview - China Coalbed Methane is a Hong Kong-listed energy company primarily engaged in coalbed methane extraction, pipeline transportation, LNG liquefaction, storage, sales, and related engineering services [1] - The company has invested over 2 billion yuan in projects across Tianjin, Hebei, and Shanxi, establishing a complete industrial chain from coalbed methane extraction to LNG logistics and market application [1] Transaction Details - Shanxi Shenggang Energy, established in April 2020 with a registered capital of 5 million yuan, is the buyer of Qingshui Shuntai [1] - Qingshui Shuntai, founded in November 2006 with a registered capital of 240 million HKD, is primarily involved in the manufacturing and sales of liquefied coalbed methane [3] - The sale is motivated by Qingshui Shuntai's aging liquefaction equipment, high maintenance costs, and uncertain returns on technology upgrades, alongside a market oversupply of LNG leading to a significant price drop from 5,194 yuan per ton in September 2024 to 3,840 yuan per ton in September 2025 [3] Financial Implications - After the sale, China Coalbed Methane expects a net amount of approximately 23.9 million yuan, which will be allocated for R&D in hydrocarbon-based natural gas technology (10 million yuan), acquisition of a 17% stake in Wan Zhi Logistics (10.2 million yuan), and replenishing working capital (3.7 million yuan) [4] Industry Context - Shanxi has two leading coalbed methane companies: Shanxi Lanhua Coalbed Methane Co., Ltd., established in January 2010, and the newly unveiled Jincheng Coalbed Methane Investment and Development Group Co., Ltd. [5][6] - Jincheng Coalbed Methane aims to leverage local coalbed methane resources for industrial development, focusing on creating a comprehensive pipeline network to enhance gas delivery efficiency [6]

Core Viewpoint - The company plans to sell 100% equity of Shanxi Qingshui Shuntai Energy Development Co., Ltd. to Shanxi Shenggang Energy Co., Ltd. for a cash consideration of RMB 24.6093 million, which is seen as an opportunity to realize its investment and focus resources on developing new technology for natural gas production [1] Group 1 - The target company is a wholly foreign-owned enterprise registered under Chinese law and is a direct wholly-owned subsidiary of the company, primarily engaged in the manufacturing and sales of liquefied coalbed methane [1] - The board believes that the sale will provide a good opportunity for the group to monetize its investment in the target company [1] - The company intends to concentrate its resources on the research and development of a new technology for natural gas production, which has been in development since 2017 [1] Group 2 - The new technology is referred to as "ultra-high temperature steam catalyzed coal mineral accelerated quality change evolution hydrocarbon production technology," previously known as "ultra-high temperature water activation hydrocarbon production technology" [1] - The company has appointed the Hong Kong Productivity Council as a technical partner to further develop a commercial prototype of the technology [1] - The sale aligns with the group's strategy to allocate its financial and human resources towards business development [1]

Core Viewpoint - The company intends to sell 100% equity of its subsidiary, Shanxi Qingshui Shuntai Energy Development Co., Ltd., to Shanxi Shenggang Energy Co., Ltd. for a cash consideration of RMB 24.6093 million, which is seen as an opportunity to realize its investment and focus resources on developing new technology for natural gas production [1] Group 1 - The target company is a wholly-owned foreign enterprise registered under Chinese law, primarily engaged in the manufacturing and sales of liquefied coalbed methane [1] - The board believes that the sale will provide the group with a good opportunity to monetize its investment in the target company [1] - The company plans to concentrate its resources on the research and development of a new technology for natural gas production, which has been in development since 2017 [1] Group 2 - The new technology is referred to as "ultra-high temperature steam catalyzed coal mineral accelerated quality change evolution hydrocarbon production technology," previously known as "ultra-high temperature water activation hydrocarbon production technology" [1] - The company has appointed the Hong Kong Productivity Council as a technical partner to further develop a commercial prototype of the technology [1] - The sale aligns with the group's strategy to allocate its financial and human resources towards business development [1]

Core Viewpoint - The company reported a significant decline in revenue and an increase in losses for the six months ending June 30, 2025, primarily due to the suspension of liquefied coalbed methane production for upgrades [1] Financial Performance - Revenue for the period was 57.52 million RMB, representing a year-on-year decrease of 52.1% [1] - The loss attributable to equity shareholders was 11.116 million RMB, which is an increase of 170.3% compared to the previous year [1] - Basic loss per share was 2.85 cents [1] Operational Changes - The decline in revenue was mainly due to a subsidiary halting its liquefied coalbed methane production in May 2025 for comprehensive upgrades and renovations of its liquefaction machinery and equipment [1]

Core Viewpoint - China Coalbed Methane (08270) reported a significant decline in revenue and an increase in losses for the six months ending June 30, 2025, primarily due to the suspension of liquefied coalbed methane production for upgrades [1] Financial Performance - Revenue for the period was 57.52 million RMB, representing a year-on-year decrease of 52.1% [1] - The loss attributable to equity shareholders was 11.116 million RMB, which is a year-on-year increase of 170.3% [1] - Basic loss per share was 2.85 cents [1] Operational Changes - The decline in revenue was mainly due to a subsidiary's suspension of liquefied coalbed methane production in May 2025 for comprehensive upgrades of its liquefaction machinery and equipment [1]