BINHAI INV (02886) has announced that its non-wholly owned subsidiary, Qiyuan Zhikong, has entered into agreements with two entities: the collective economic organization of Baibiao Village, Xinshi Town, Deqing County, and Deqing Xinhuihe Construction Development Co., Ltd. (collectively referred to as the "counterparties"). Under these agreements, Qiyuan Zhikong will invest in and construct a distributed photovoltaic (PV) power generation project, with a planned total installed capacity of 3.51 megawatts (subject to actual installation).
Qiyuan Zhikong will utilize the rooftops of the counterparties' properties to invest in, build, and operate the PV project. This includes handling all regulatory compliance procedures such as project registration, grid connection approval, and construction permits, as well as equipment procurement, engineering construction, and ongoing operations and maintenance management. The lease term will commence upon the PV project's grid connection and power generation, lasting for 15 years.
All revenue generated from the PV project, including electricity sales, government subsidies, and green certificate income, will be retained by Qiyuan Zhikong. The company views this project as its first externally invested distributed generation initiative, marking a significant breakthrough in diversifying project implementation within the comprehensive energy services sector. This represents a key step in accelerating the company's transition into a comprehensive energy supplier.
The entity responsible for the project's construction and operation, Qiyuan Zhikong, serves as the implementation platform for the strategic cooperation between the company and the Deqing County government, integrating local resources and policy synergies in Deqing County. While providing the company with long-term, stable returns, the project is also expected to accumulate replicable practical experience in distributed PV operations. This will lay a solid foundation for the company's subsequent large-scale expansion into the comprehensive energy services market, thereby creating sustainable long-term value for shareholders.
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