Securities code: 002700 securities abbreviation: St Haoyuan Announcement No.: 2022-012
Xinjiang Haoyuan Natural Gas Co.Ltd(002700)
Announcement on the progress and termination of the implementation of Kuqa refined gas gasification project of the holding Sun company
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.
Xinjiang Haoyuan Natural Gas Co.Ltd(002700) (hereinafter referred to as “the company”) held the 16th meeting of the Fourth Board of directors on February 18, 2022, deliberated and adopted the proposal on the progress and termination of the implementation of Kuqa refined gas gasification project of the holding subsidiary. The details are announced as follows:
1、 Basic information of Kuqa project
“Kuqa refined gas chemical project” is a project implemented by Xinjiang Zhiben Fine Chemical Co., Ltd. (hereinafter referred to as “Xinjiang Zhiben”), a holding subsidiary of the company. For details, see the announcement on the signing of major investment contracts by holding subsidiaries (Announcement No.: 2018-054) disclosed on August 3, 2018 and the announcement on the proposed establishment of Kuqa project company by holding subsidiaries (Announcement No.: 2018-068) disclosed on August 17, 2018.
The project was originally planned to be constructed in three phases, of which the first phase is a 400000 T / a natural gas to ethylene glycol project, with an investment of about 4 billion yuan; Phase II is 180000 T / a natural gas to Fischer Tropsch wax project or ethylene glycol, methanol, etc. (according to market demand), with an investment of about 2.5 billion yuan; The coal / oil mixing project is planned in phase III, with an investment of about 15 billion yuan. The first phase of the project mainly uses natural gas as the production raw material, and uses pure oxygen non catalytic conversion technology, corresponding syngas purification technology and advanced ethylene glycol synthesis technology to produce high-quality ethylene glycol.
2、 Investment progress
The relevant financial data of Xinjiang Zhiben are as follows:
Unit: 10000 yuan
September 30, 2021 December 31, 2020
Assets 4753.14 4843.30
Liabilities 9.00 16.27
Net assets 4744.13 4827.03
Net profit -82.90 -147.82
Construction in progress 3638.47 3638.47
Securities code: 002700 securities abbreviation: St Haoyuan Announcement No.: 2022-012
Administrative expenses 83.70 207.56
3、 Description of project progress and termination
Since the start of the project, the company has successively signed investment agreements with the local government, filed the project, signed relevant process package technology license contracts, established the project company and supporting natural gas pipeline company, and carried out various compliance approvals such as environmental impact assessment, safety assessment and energy-saving report.
Due to the large amount of investment in the project and the large demand for funds, after the company’s securities were warned of other risks due to the occupation of funds by major shareholders, the corresponding investment and financing functions are limited in a short period of time, so it is difficult to raise funds for the project. At the same time, the raw material of the project is natural gas. Affected by the world crude oil market, the market price of ethylene glycol fluctuates greatly, the market conditions during the project have changed greatly, and the estimated income and feasibility of the project have changed greatly. In addition, the scale of the project is large, and the use of natural gas still fails to determine a stable gas supply scheme with Sinopec or PetroChina. The project registration preparation time is from March 2019 to August 2020. In August 2020, Aksu regional development and Reform Commission agreed to extend the project for one year to August 2021. At present, the filing time of the project has expired. Considering the current situation of the company, the company plans to terminate the implementation of the project.
4、 Impact on the company
The company will actively and properly deal with follow-up related issues and timely fulfill the obligation of information disclosure according to the progress. At the same time, the company plans to withdraw the impairment of corresponding assets in accordance with the requirements of the accounting standards for business enterprises. The specific amount will be calculated according to the subsequent arrangements and fulfill the obligation of information disclosure in time.
5、 Risk tips
The company plans to terminate the implementation of “Kuqa refined gas gasification project”, which will not have an impact on the company’s continuous operation. However, the company expects to conduct impairment test on relevant assets and may accrue asset impairment losses, which may have a great impact on the profits of 2021. The termination of this project needs to be deliberated and approved by the general meeting of shareholders of listed companies. Please pay attention to the investment risks.
6、 Documents for future reference
1. Resolution of the 16th meeting of the 4th board of directors of the company
It is hereby announced.
Xinjiang Haoyuan Natural Gas Co.Ltd(002700) board of directors
February 18, 2022
