According to Zhitong Finance App, Shangao New Energy (01250) announced that on May 14, 2024 (after the trading period), Yingyu Hong Kong (a direct wholly-owned subsidiary of the company) and Shandong Hi-Speed Renewable Energy Development signed an investment cooperation agreement to establish a joint venture in China. According to the investment cooperation agreement, the total amount of capital pledged (i.e. total registered capital) is RMB 60 million, of which 40% (i.e. investment amount of RMB 24 million) will be funded by Yingyu Hong Kong and the remaining 60% (i.e. RMB 36 million) will be funded by Shandong Hi-Speed Renewable Energy Development.

The joint venture will be a limited liability company established in accordance with Chinese law and the terms of the investment cooperation agreement. The name of the joint venture was proposed as Shandong Expressway Luzhongxin Energy Co., Ltd. (tentative name, final subject to industrial and commercial registration). The joint venture plans to mainly engage in the development, investment and operation of power generation, distribution and power supply businesses, energy storage, photovoltaic power generation and wind power generation businesses (ultimately subject to industrial and commercial registration).

According to the announcement, the establishment of a joint venture will enable the company and Shandong Expressway Group to give full play to their respective advantages, advance the strategic layout in the field of new energy, and enhance industrial synergy. The establishment of a joint venture is conducive to meeting the energy storage supporting business needs of the company's existing wind power projects, optimizing resource allocation and sharing market development dividends. It will further enhance the company's competitiveness and market position, and establish a long-term, sustainable and high-quality development pace.