On July 4th, Guolonghui reported that bj energy intl (00686.HK) announced to sign an intention agreement with China Power Construction Jiangxi on July 4th, 2024, according to which, United Photovoltaics (Changzhou) (subsidiary) agreed to pay an intention money of approximately CNY 38.4 million (subject to the achievement of certain preconditions) to China Power Construction Jiangxi to promote the further negotiation on potential acquisition and the exclusive right to obtain development and operation projects.

The project refers to a group of assets, which includes the 80 MW Dongrun Wind Power Project in Shiqian County, Tongren City, Guizhou Province, the 100 MW Lisheng Wind Power Project, Wuchuan Township, Baoji City, Shaanxi Province, the 200 MW Runlong Wind Power Project, Heshui Town, Yangchun, Guangdong Province, the 25 MW Fishing and Photovoltaic Complementary Project, Houchong Town, Lufeng, Guangdong Province, and the 300 MW Wind Power Asset Package Project in Yigang, Heiyanshan, Tongwei County, Dingxi City, Gansu Province.

The Group has been looking for suitable investment opportunities to acquire clean energy projects with good prospects and potential to bring stable returns. Considering the development and expected investment return of the Chinese wind power and photovoltaic industry, the Company holds an optimistic view on the prospects of the Chinese wind power and photovoltaic industry in the visible future. The Board of Directors believes that the potential acquisition (once implemented) will complement the Group's existing new energy power plants, further expand the Group's business scale in the new energy industry, and earn greater returns for the shareholders. Therefore, the Board of Directors believes that the potential acquisition is a good opportunity to expand the Group's existing clean energy business. The intention money is used to promote the project development and potential acquisition negotiation process. According to the intention agreement, United Photovoltaics (Changzhou) has the aforementioned exclusive right to negotiate on potential acquisition during the lock-up period. The intention money can be refunded and the refund is guaranteed by a bank guarantee. The Directors believe that the payment of intention money can ensure that United Photovoltaics (Changzhou) obtains the aforementioned exclusive right of negotiation and development.