Gelonghui reported on December 12 that Hengdian Group DMEGC Magnetics (002056.SZ) announced that according to the company's strategic development plan, it intends to sell 100% of the equity of its wholly-owned subsidiary Jiangsu Lianyungang Port Ganyu Dongshang New Energy Co., Ltd. (hereinafter referred to as "Dongshang New Energy" or "target company") to Zhejiang New Energy Investment Group Co., Ltd. (hereinafter referred to as "Zhejiang New Energy" or "transferee") at an equity transfer price of approximately 0.5 billion yuan (final price will be based on net assets after deducting power generation income on the delivery date). After the completion of this trade, Dongshang New Energy will no longer be included in the company's consolidated financial statements; it is expected to increase the company's total profit and cash flow in 2024, with specific data subject to the audit results.

Before this trade, due to the needs of the power station project development, the company provided a joint liability guarantee for the fixed asset loan applied by Dongshang New Energy's wholly-owned subsidiary Jiangsu Lianyungang Port Ganyu Dongshang Photovoltaic Power Co., Ltd. (hereinafter referred to as "Dongshang Photovoltaic" or "project company") to the Bank Of China Limited Lianyungang Ganyu Branch (hereinafter referred to as "Bank Of China Ganyu Branch"). After this trade, the joint liability guarantee provided by the company for the financing loan applied by Dongshang Photovoltaic will be timely processed for release. This trade does not constitute a related party transaction, nor does it constitute a significant asset restructuring as defined by the "Administrative Measures for Significant Asset Restructuring of Listed Companies."