Jilin Chemical Industrial has agreed to buy 159.5 million yuan (HK$148.17 million) worth of assets from its ultimate parent China National Petroleum Corp (CNPC) to offset debt owed to it for more than three years. Jilin Chemical Industrial, a subsidiary of PetroChina, will buy water filtering systems and ammonia liquefaction facilities from Jilin Chemical Group, a wholly owned unit of CNPC. The water filtering systems will increase its consumption of recycled water and lower its water cost of 96 fen per tonne to 45 fen, saving it about 7.31 million yuan annually. It will also receive an estimated 3.67 million yuan of annual revenue from supplying water to outside entities. The ammonia liquefaction facilities will be used to cool Jilin Chemical Industrial's production facilities. The purchase was estimated to generate 1.4 million yuan of cost savings a year. The company expected the acquisitions to result in a combined increase in depreciation charges of 11 million yuan, but would reap total production cost savings of 12 million yuan. It would pay for the assets, worth 159.5 million yuan, by setting off the amount against the accounts receivables owed to it by Jilin Chemical Group. The latter will still owe Jilin Chemical Industrial 183.1 million yuan on the deal's completion. Jilin Chemical Industrial had 594.97 million yuan of accounts receivable on June 30, and made bad debt provisions of 31.85 million yuan in the first nine months of this year. Jilin Chemical Industrial's A shares resumed trading in late September after a five-month suspension following three consecutive years of net losses. It posted a net profit of 348.03 million yuan in the first nine months of this year, a turnaround from net losses of 659.01 million yuan last year.