Gelonghui December 5th 丨Ganghua Smart Energy (01083.HK) announced that on December 5, 2022, Nanjing Gaochun (an indirect wholly-owned subsidiary of the company) signed an equity transfer agreement with Ganghua International Energy (an indirect wholly-owned subsidiary of China Gas). According to this, Nanjing Gaochun has agreed to sell and Ganghua International Energy has agreed to purchase all of Nanjing Chungang Energy's shares at a cost of RMB 2 million. After the sale is completed, Nanjing Chungang Energy will no longer be a subsidiary of the company, and the financial results of Nanjing Chungang Energy will no longer be comprehensively included in the company's consolidated financial statements.

According to the announcement, Nanjing Chungang Energy is currently the gas source scheduling and operation platform for China Gas Group and the Group in the Jiangsu and Zhejiang regions, and plays an important role in gas source security and market operation of China Gas Group and various project companies of the Group in the Jiangsu and Zhejiang regions. At present, Nanjing Chungang Energy has established a long-term coordination and operation mechanism with group companies in the region and the Jiangsu Pipeline Network Company, which has achieved good results. As the scale of the business expands, the operating status of Nanjing Chungang Energy as a wholly-owned subsidiary of China Gas Group will facilitate leveraging the above advantages and continuing efficiency results. The sale can improve the Group's gas source operation efficiency and integrate the gas source operating resources.

The net proceeds from the sale (after deducting expenses relating to the sale) are intended for the Group's general working capital purposes.