Xinyang Maojian(00362) Announced that on September 4, 2020, the seller (Mudanjiang Longtuo New Energy Co., Ltd., an indirect wholly owned subsidiary of the company) plans to sell 40% of the shares of the target company Mudanjiang Jiali Thermal Power Co., Ltd. to the buyer Lu Wangsheng for RMB 70 million.

The target company is mainly engaged in the production and sale of heat and electricity. After the sale is completed, the group will indirectly hold 60% of the target company's shares through the seller, and the target company will remain a subsidiary of the company.

The directors believe that the sale will allow the Group to realize part of its investment in the target company, so improving the Group's liquidity and generating additional cash inflows can enhance the Group's ability to invest in other potential future investment opportunities.