On September 27, Ge Longhui Energy (000600.SZ) announced that the company plans to purchase 50% of the shares of CCIC Guodian Zhungeerqi Energy Co., Ltd. (“Zhunneng Company”) held by Hebei Construction Investment in cash through an agreed transfer agreement (“this transaction” for short). Since Hebei Construction Investment is the controlling shareholder of the company, this transaction constitutes a related transaction.

Zhunneng Company built two 660MW ultra-supercritical coal-fired indirect air cooling units, which were put into operation in July and November 2023, respectively. They are one of the five supporting power points for the Inner Mongolia to Beijing West Tianjin South Electric Power Channel. The main business model of Zhunneng Company is to procure raw materials such as coal to produce and sell electricity. The profit model is to obtain profits by selling electricity. Currently, the North China Division of State Grid Co., Ltd. is the main customer of Zhunneng Company.

The transaction price of the underlying asset of this transaction is based on the evaluation results of China Enterprise China Enterprise China Review Report (2024) No. 6469 issued by China Enterprise China and filed by Hebei Construction Investment. The transaction price for the company's purchase of 50% of Zhunneng Company's shares from Hebei Construction Investment, the controlling shareholder, was 687.2304 million yuan.

After the completion of this transaction, the company will increase the holding installed capacity of Zhuoneng Company by 1.32 million kilowatts, further expand the installed capacity and asset scale, and further increase the company's share in the northern Hebei electricity market, which is in line with the company's development strategy. After the transaction is completed, Zhuneng will be included in the scope of the company's consolidated statements, and the company's total assets, net assets, operating income and net profit will increase.