Jjointo energy investment (000600.SZ) announced on September 27 that the company plans to purchase 50% equity of Jjointo Guodian Zhungeerqi Energy Co., Ltd. ('Zhunneng Company') held by Hebei Construction Investment through agreement transfer in cash (referred to as 'this transaction'). As Hebei Construction Investment is the controlling shareholder of the company, this transaction constitutes a related party transaction.

Zhunneng Company is constructing two 660MW ultra-supercritical indirect air-cooled coal-fired units, scheduled to start operation in July and November 2023, as one of the 5 supporting power points in the power channel from Inner Mongolia to Beijing West and Tianjin South. The main operation mode of Zhunneng Company is to purchase coal and other raw materials for electricity production and sales, with a profit model of generating profits through electricity sales. Currently, State Grid Corporation of China's North China Division is the main customer of Zhunneng Company.

The transaction price of the target assets in this transaction is based on the evaluation report with the evaluation number (2024) 6469 issued by Zhongqi Hua which was filed by Hebei Construction Investment. The transaction price for the company to purchase 50% equity of Zhunneng Company from the controlling shareholder Hebei Construction Investment is 687.2304 million yuan.

After this transaction is completed, the company will increase its controlling installed capacity of Zhunneng Company by 1.32 million kilowatts. The installed capacity and asset size will further expand, and the company's market share in the northern Hebei power market will also increase, aligning with the company's development strategy. After the completion of this transaction, Zhunneng Company will be included in the company's consolidated financial statements, and the total assets, net assets, operating income, and net profit of the company will increase.