According to the Zhitong Finance App, Zhengtai Electric (601877.SH) announced that the company plans to jointly invest no more than RMB 347 million with Shanghai Zhishou Management Consulting Center (Limited Partnership) (“Shanghai Chou Feng”) and Shanghai Chuofeng Management Consulting Center (limited partnership) (“Shanghai Chuofeng”) to establish Wenzhou Angtai Power System Co., Ltd. (tentative name, “Angtai Power”), of which the company invested no more than 303 million yuan, Shanghai Zhisho invested 33.6 million yuan, and Shanghai Chuofeng invested 10.5 million yuan.

Furthermore, after the establishment of Angtai Power is completed, Angtai Power plans to increase the capital of Shanghai Zhengtai Power Systems Co., Ltd. (“Zhengtai Power”). The total amount of capital increase is RMB 33.6 million. The company relinquishes priority subscription rights for this capital increase. After this capital increase is completed, it is proposed to complete the equity integration of Zhengtai Power through the transfer of control rights of Zhengtai Power held by the company and Shanghai Chuofeng to Angtai Power.

According to reports, in order to facilitate the implementation of the transaction plan for the company to acquire a controlling interest in Jiangsu Tongrun Equipment Technology Co., Ltd. (“Tongrun Equipment”) and sell the assets, the company plans to complete the integration of control over the target assets to be sold (that is, Zhengtai Power) through the establishment of Angtai Power and through capital increases and equity transfers between shareholders of Zhengtai Power. This transaction is conducive to further establishing and improving the long-term incentive and restraint mechanism of Zhengtai Power, and enhancing the level of global competition in the company's photovoltaic inverter and energy storage business through resource integration.