Hidili Industry International Development (01393.HK) said that it has entered into equity purchase agreements with Qujing Mingzhu Group Investment Development Company Limited to acquire 20% equity interest in Panxian Fuyuan Kuntie Coal Washing Company Limited (Fuyuan Kuntie), 18% equity interest in Guizhou Weiqing Coking Logistic Company Limited and 41.78% equity interest in Fuyuan Jintong Coking Company Limited at a cash consideration of RMB150 million (HK$184 million) in aggregate.

The principal activity of Fuyuan Kuntie is clean-coal processing. Its coal washing plant is located in the intersection of Panxian, Liupanshui, Guizhou Province and Fuyuanxian, Yunnan Province, adjacent to other coal mines in Lemin, Panxian owned by Hidili as well as the railway warehouses of Guizhou Weiqing. The coal washing plant has an annual processing capacity of 300,000 tonnes.

The principal activities of Guizhou Weiqing are warehouse management and provision of railway logistics service in Panxian. The annual transportation capacity of Guizhou Weiqing is 2.5 million tonnes.

The principal activities of Fuyuan Jintong are warehouse management and provision of railway logistics service in Fuyuanxian. The annual transportation capacity of Fuyuan Jintong is 3 million tonnes.

Hidili believes that the proposed acquisitions will enhance its integration in downstream coal washing facilities as well as logistics service and substantially reduce its transportation cost in the course of operation.