Gelonghui, May 24, 丨 Weineng Group (01608.HK) announced that on May 24, 2024, the company signed a memorandum of understanding with the controlling shareholder China Technology Import and Export Group Co., Ltd. (“GM Technology Corporation”) relating to (i) the Group's possible sale of power generation fixed assets and inventory to GM Technology to establish an asset management platform to receive cash compensation; and (ii) the Group and GM Technology's asset management platform may enter into leasing arrangements for the Group's long-term and exclusive use of such assets to generate electricity to execute its power projects (collectively referred to as asset disposal matters) is a “transaction”).

The Group is one of the world's leading operators and owners of engine-type distributed power plants, and its business footprint covers different countries. The Board believes that the memorandum of understanding launches the Group's asset-light strategic journey. Once the transaction is implemented, the Group will be able to focus on its core competitiveness in operations, give full play to the resource advantages of controlling shareholders, improve liquidity and profitability in a high-interest environment, and quickly adapt to the changing market environment.

The Group plans to use the proceeds from asset disposal matters (once implemented) to repay debts and as working capital.