Delong Composite Energy (SHE:000593) subsidiary Yangxin Gas signed a 12-year cooperative operation agreement with Hubei Mengrun Technology to lease its gas station construction site.
Hubei Mengrun Technology will invest in and build the station, then operate independently, paying Yangxin Gas fixed annual income of at least 810,000 yuan, according to a Thursday filing with the Shenzhen bourse.
Starting year two, Yangxin Gas will receive an additional 5% of annual revenue if it exceeds the fixed amount.
Shares of the gas company closed 4% lower Thursday.