Shandong Shengli Co Ltd

Shengli Shares disclosed its reply to an inquiry letter, announcing plans to acquire 100% equity in Zhongyou Zhuhai, 100% equity in Tianda Shengtong, 51% equity in Nantong Zhongyou, and 40% equity in Ganhe Zhongyou through a combination of share issuance and cash payment, for a total consideration of 1.751 billion yuan. Upon completion, the company will control a combined 100% equity in Nantong Zhongyou and 80% equity in Ganhe Zhongyou. The performance of the target assets shows clear divergence. Ganhe Zhongyou's natural gas sales revenue in 2024 and 2025 was approximately 172 million yuan and 192 million yuan, with gross margins as high as 32.62% and 33.03%, making it the most profitable. Nantong Zhongyou's sales revenue over the same period was about 561 million yuan and 546 million yuan, with gross margins of 16.56% and 18.20%, leading in revenue scale but with thinner profits. Tianda Shengtong's sales revenue was 237 million yuan and 214 million yuan, with gross margins of only 9.53% and 13.82%, and its core asset Nanjing Jiening saw declining sales. During the reporting period, Ganhe Zhongyou's top five customers accounted for 86.38% and 84.73% of sales revenue, highlighting significant customer concentration risk, while Nantong Zhongyou primarily serves residential users but non-residential gas consumption exceeds 90% of volume. Additionally, some targets lack clearly defined priority renewal rights in their franchise agreements, deviation settlement and shortfall penalty clauses in natural gas procurement contracts may add extra costs, and policies on direct supply to large users along with industry consolidation trends bring customer loss and operational uncertainty.