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[Introduction] Yongtai Energy has obtained a bank-enterprise cooperation quota of 3.5 billion yuan, and the procedure for transferring mine boundary resources has been initiated.

China Fund News reporter Zhao Gang

Yongtai Energy’s “self-rescue” is still continuing!

After a series of favorable measures were released on the evening of August 7, Yongtai Energy resumed trading on August 8, and its share price hit the daily limit, closing at 1.21 yuan per share.

On the evening of August 8, Yongtai Energy released two "good" news in succession, announcing the signing of a bank-enterprise cooperation agreement with a total amount of 3.5 billion yuan and the progress in expanding the high-quality coking coal resources of its coal mines.

Announcement of two major "good news"

Yongtai Energy announced that Shanxi Bank and Jinshang Bank have signed bank-enterprise cooperation agreements with the company respectively, providing credit support of no more than 2 billion yuan and 1.5 billion yuan to the company and its subsidiaries respectively, with a total amount of no more than 3.5 billion yuan.

Yongtai Energy said that this cooperation will provide strong financial support for the company's production and operation, key project construction and high-quality development, effectively optimize the debt structure, and help the company strengthen and improve its core energy business and achieve high-quality development.

At the same time, Yongtai Energy also announced the progress of expanding high-quality coking coal resources in its coal mines.

The announcement shows that according to relevant regulations, the high-quality coking coal border resources around Sunyi Coal Mine, Mengziyu Coal Mine and Jintaiyuan Coal Mine owned by Yongtai Energy meet the conditions for resource expansion. Relevant departments have initiated the process of transferring the border resources of the above three mines.

Yongtai Energy said that after acquiring the above-mentioned coal resources, the company is expected to increase its high-quality coking coal resources by 19.75 million tons, equivalent to adding a new medium-sized mine; based on a mining ratio of 75%, approximately 14.81 million tons of high-quality coking coal can be mined, which will have a positive impact on the company's asset value and operating performance.

The company said that it expects to increase its total net profit by approximately RMB 3 billion (calculated based on the company's current average net profit of approximately RMB 200 per ton of coal in its coal mining and dressing business and the newly added recoverable reserves), which will further enhance the company's overall operating performance.

Previously, it was close to "delisting at one yuan"

Since the beginning of this year, Yongtai Energy’s pressure to delist at face value has increased sharply.

In late May, Yongtai Energy's share price fell below 1.3 yuan per share, reaching the 130% warning line of some institutions. On July 24, Yongtai Energy's share price fell to 1.1 yuan per share, approaching the "one yuan delisting" warning line.

Subsequently, Yongtai Energy started to "save itself" by protecting its stock price. It suspended trading for 10 trading days on the grounds of planning major matters, increased the repurchase amount, and issued a letter to all shareholders to protect the company's stock price.

According to a previous announcement, Yongtai Energy will adjust the total amount of funds for share repurchases from 150 million yuan to 300 million yuan to 500 million yuan to 1 billion yuan, and change the purpose of share repurchases from "for employee stock ownership plans or equity incentives" to "for cancellation to reduce registered capital."

In a letter to all shareholders, Yongtai Energy stated that the company attaches great importance to stock price maintenance and will take all measures in a serious and responsible manner towards all shareholders and the company to fully maintain the company's stock price and promote the continuous increase of the company's stock price.

After being suspended for 10 trading days, Yongtai Energy announced a series of "combination punches" on the evening of August 7 and announced that it would resume trading on August 8.

The most notable one is that Yongtai Energy plans to purchase 51.0095% of Tianyue Coal held by Xinyi Group through the issuance of shares, with the transaction price tentatively set at no more than 350 million yuan. Yongtai Energy will use this transaction to increase the reserves and production capacity of high-quality coking coal, and increase the main business income and profits of the listed company.

According to Yongtai Energy, after the completion of the above transaction, the company's high-quality coking coal resource reserves can increase by 28.3696 million tons, and coking coal production capacity can increase by 600,000 tons/year, which is conducive to the implementation of the "clean coal strategy" and further consolidate the development foundation of the coal-fired power main business.

On August 8, brokerages including CICC, Kaiyuan Securities, and Debon Securities gave Yongtai Energy a "buy" or "increase holdings" rating.

Editor: Xiaomo

Reviewer: Chen Siyang

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