According to the announcement, under the capital increase and share expansion agreement, Huainan Mining agrees to acquire 11% of Pinggui Power’s equity by injecting capital into the registered capital of Pinggui Power at a cost of approximately RMB 0.153 billion.

After the transaction, the company's equity in Pinggui Power will be diluted from 60% to 49%, and Pinggui Power will no longer be a subsidiary of the company but will become an associate company.

The announcement states that the capital increase and share expansion agreement represents the strategic partnership established between the company and Huainan Mining based on the cooperation framework agreement, aiming to leverage the industrial model advantages of the "two associations," namely "coal and coal power" and "coal power and new energy fund."

The capital increase further strengthens the parties' commitment to the development of the Pinggui Phase IV project, which is one of the key power generation projects in Anhui Province under the national "14th Five-Year Plan," and is of significant importance for alleviating the power shortage in Anhui Province and supporting sustainable development of the regional economy and community.

Entering into the capital increase and share expansion agreement will ensure that the company can fully benefit from the clean and efficient new units of the Pinggui Phase IV project, which aligns with the company's green and sustainable development strategic goals. Moreover, the post-transaction commitments under the capital increase and share expansion agreement will enable the group to achieve synergies in strategy and operation, ensuring a double security of long-term stable coal supply and stable power generation for Pinggui Company.