CHINA QINFA: Zhejiang Energy Asia Pacific will purchase coal from SDE
CHINA QINFA has signed a coal supply agreement with Zhejiang Energy Asia Pacific, under which SDE will sell 75,000 metric tons of Indonesian thermal coal to Zhejiang Energy Asia Pacific. Although the original plan was to sign a long-term agreement for 20 years, both parties decided to first sign a short-term agreement due to the need to assess annual production capacity. This agreement will provide the group with a stable source of income to meet the ongoing demand of Zhejiang Energy Holding Company's state-owned power plants
According to the announcement from CHINA QINFA (00866), SDE (the company's non-wholly-owned subsidiary) has entered into a coal supply agreement with Zhejiang Energy Asia Pacific, concerning the purchase of coal by Zhejiang Energy Asia Pacific from SDE. SDE agrees to sell, and Zhejiang Energy Asia Pacific agrees to purchase 75,000 metric tons of Indonesian thermal coal (basic quantity).
As disclosed in the company's announcement dated June 25, 2024, it was originally expected that Zhejiang Energy would enter into a 20-year coal supply agreement with SDE. However, the parties require more time to assess their annual capacity before committing to a long-term agreement. Therefore, the parties have decided to establish a shorter-term coal supply agreement at this stage. By entering into this coal supply agreement, the group will have a stable source of income due to the ongoing demand from the state-owned power plants of Zhejiang Energy's holding company
