Longyuan Power Group Co., Ltd. is listed in Chongqing United Property Rights Exchange and intends to transfer its 7.33% equity in Guodian Fuel Co., Ltd. at a price of 314.6919 million yuan. Sources said Guodian Fuel's controlling shareholder, China Guodian Group, is expected to be the counterparty to the deal.

Guodian Fuel Co., Ltd. registered capital of 2.413 billion yuan, mainly engaged in the sale of coal. It is 92.67% owned by China Guodian Group and 7.33% by Longyuan Power Group. After this transfer, longyuan group will no longer hold the company's equity.

The data show that Guodian Fuel Co has had a good performance in recent years. In 2010, the company realized operating income of 11.535 billion yuan, operating profit and net profit of 939 million yuan and 781 million yuan respectively. By the end of August 2011, the company has realized operating income of 14.971 billion yuan, operating profit and net profit of 895 million yuan and 726 million yuan respectively.

According to the audit, by the end of 2010, the company's assets totaled 5.446 billion yuan, including net assets of 3.617 billion yuan. According to the appraisal report dated December 31, 2010, the book value of assets of Guodian Fuel Co., Ltd. is 5.446 billion yuan, which cannot be provided. The book value of net assets was 3.617 billion yuan, and the appraised value was 4.293 billion yuan, with the appraised value increasing by 18.69%. The corresponding appraisal value of the transferred object is RMB 314,691,900.

For the transferee, Longyuan power's terms are: registered capital shall not be less than 300 million yuan; It shall be a coal energy investment enterprise related to the main business of the target enterprise; In 2009 and 2010, the company shall be continuously profitable. At the end of 2010 annual report, the audited net assets are not