According to the unaudited interim report released by Jingcheng Mechanical and Electrical in the first half of 2024, the company is registered in Beijing, China, and listed on the Hong Kong and Shanghai stock exchanges. Its subsidiary Jingcheng Investment has recently acquired the controlling rights of Shanghai Shunhua New Energy System Co., Ltd., and plans to become the largest shareholder of Shanghai Shunhua through equity transfer and capital increase, with a final shareholding ratio of not less than 34.58%, investing about 0.59 billion RMB. This transaction involves the public listing of some state-owned shareholders of Shanghai Shunhua on the property rights exchange, and the transfer price will be determined based on the listing results. Jingcheng Mechanical and Electrical has notified the company...Show More

According to the unaudited interim report released by Jingcheng Mechanical and Electrical in the first half of 2024, the company is registered in Beijing, China, and listed on the Hong Kong and Shanghai stock exchanges. Its subsidiary Jingcheng Investment has recently acquired the controlling rights of Shanghai Shunhua New Energy System Co., Ltd., and plans to become the largest shareholder of Shanghai Shunhua through equity transfer and capital increase, with a final shareholding ratio of not less than 34.58%, investing about 0.59 billion RMB. This transaction involves the public listing of some state-owned shareholders of Shanghai Shunhua on the property rights exchange, and the transfer price will be determined based on the listing results. Jingcheng Mechanical and Electrical has notified the company of this business opportunity and prioritized the company's decision on whether to invest. After comprehensive consideration of the actual operation of the company and the status of related assets, the company plans to give up this business opportunity. After the acquisition is completed, Jingcheng Mechanical and Electrical plans to use compliance measures such as equity or asset transfer to resolve potential competition issues arising from the acquisition of Shanghai Shunhua. During the period from the completion of the investment to the resolution of potential competition issues, Jingcheng Investment will entrust the company to manage the equity of Shanghai Shunhua to protect the interests of the company and all shareholders, especially minority shareholders. As Jingcheng Mechanical and Electrical is the controlling shareholder of the company, Jingcheng Investment as its wholly-owned subsidiary is considered a related party.