Kaishan Group Co., Ltd. (300257.SZ) announced that its wholly-owned subsidiary, KS ORKA Renewables Pte Ltd ("KS ORKA"), recently signed a Letter of Intent (LOI) with Hungarian company Bölény Zrt ("Bölény") and other partners to establish a joint venture. The collaboration aims to jointly develop geothermal power projects in Hungary.

The joint venture's initial operations will focus on: 1. Upgrading Kaishan's existing geothermal power plant in Hungary to increase its net power generation capacity to 6.5MW. 2. Developing, constructing, and operating new geothermal power plants with a total installed capacity of 104MW (final scale subject to reservoir conditions).

At the time of signing the LOI, Bölény was preparing to launch a government-backed hybrid energy fund ("BEF"). Once established, Bölény will designate BEF as a shareholder in the joint venture and finalize related agreements. This partnership with Bölény and BEF is expected to serve as a strategic platform for Kaishan's expansion into Hungary and broader Central and Eastern European energy markets.

The proposed joint venture will have a registered capital of 500 million Hungarian forints (approximately RMB 107,500), with KS ORKA holding a 45% stake, BEF (or Bölény) holding 45%, AAPRIL Kft holding 4%, and a group of foreign individual investors, including Mr. László Szántó, collectively holding 6% (referred to as "minority shareholders").