NewOcean Energy Holdings Ltd has inked a letter of intent to purchase entire equities in Lianxin Energy Development Co Ltd for around RMB 60 million to obtain liquid natural gas business in Guangzhou, capital of Guangdong Province.
In the city, the target firm owns 17 LNG stations, which principally sell LNG to taxi drivers and bus drivers. Last year, the company's operating revenue hit RMB 1.27 billion.
A Zhuhai-based financial firm currently holds a 95% stake in Lianxin Energy Development that has a registered capital of RMB 60 million, and the remaining 5% stake is held by a Guangzhou-based gas firm.
The Hong Kong-listed purchaser, which is engaged in the sale and distribution of LNG, and sales of electronic products, reaped HKD112 million in net profit in 2009, reflecting a year-on-year jump of 112.53%, and its revenue swelled 5.3% to HK.48 billion. Gross profit margin grew from 3.37% in 2008 to 6.26% in 2009 due to increased orders.
In the city, the target firm owns 17 LNG stations, which principally sell LNG to taxi drivers and bus drivers. Last year, the company's operating revenue hit RMB 1.27 billion.
A Zhuhai-based financial firm currently holds a 95% stake in Lianxin Energy Development that has a registered capital of RMB 60 million, and the remaining 5% stake is held by a Guangzhou-based gas firm.
The Hong Kong-listed purchaser, which is engaged in the sale and distribution of LNG, and sales of electronic products, reaped HKD112 million in net profit in 2009, reflecting a year-on-year jump of 112.53%, and its revenue swelled 5.3% to HK.48 billion. Gross profit margin grew from 3.37% in 2008 to 6.26% in 2009 due to increased orders.
