BJ ENERGY INTL (00686) announced that the company plans to launch an asset-backed securities program, with asset-backed securities expected to be issued on the Shanghai Stock Exchange's fixed income securities platform in November 2025 or at a later date to be determined. The purpose is to invest in and securitize underlying assets held by the company's subsidiary Jingneng Development, as well as to raise funds for the operation and development of the group's business.

For the issuance of asset-backed securities, the company will appoint a project manager to serve as the project manager for the asset-backed securities program. Regarding the proposed issuance of asset-backed securities, Jingneng Development as the seller and original equity holder, the project manager acting as project manager and representing the asset-backed securities program as the buyer, and the relevant target companies (namely Xinyou, Youyu, or Liu'an, as applicable) plan to enter into Equity Transfer Contract A, Equity Transfer Contract B, and Equity Transfer Contract C (each contract will be further amended and supplemented by equity transfer supplementary contracts). Jingneng Development will conditionally agree to transfer all equity interests in Xinyou, Youyu, and Liu'an to the asset-backed securities program managed by the project manager through property rights exchanges for cash considerations of no less than RMB 137 million, RMB 344 million, and RMB 163 million respectively.

The directors believe that the proposed issuance of asset-backed securities will improve asset utilization efficiency, enhance the overall turnover of the company's assets, and increase the company's overall working capital. This initiative will also help reduce financial costs and strengthen the company's investment and financing capabilities.