Zhejiang Chenfeng Technology Co., Ltd. (SHSE:603685) agreed to acquire an unknown stake in Liaoning Guosheng Power Development Co., Ltd and Naiman Banner Guangxing Power Distribution Co., Ltd from Guosheng Power Sales Co., Ltd on May 7, 2023. Under the terms of transaction, Zhejiang Chenfeng Technology will acquire 100% equity of Liaoning Guosheng Power Development Co., Ltd. and 51% of Naiman Banner Guangxing Power Distribution Co., Ltd. Consideration will be paid in cash. The total transaction amount shall not exceed CNY 360 million. 50% of the equity transfer payment shall be paid within 1 month after the target equity is transferred to Party A's name, and the remaining 50% of the equity transfer payment shall be paid within 6 months after the target equity is transferred to Party A's name. In related transaction Zhejiang Chenfeng Technology Co., Ltd. also agreed to acquire Liaoning Jinqilin New Energy Technology, Tongliao Jinqilin New Energy Intelligent Technology, Tongliao Wangtian New Energy Development Co., Ltd, Tongliao Guangxing Power Generation Co., Ltd. and Chifeng Dongshan New Energy Co., Ltd from Liaoning Huanuo New Energy Co., Ltd. and Jinqilin New Energy Co., Ltd on May 7, 2023. The parties will sign a supplementary agreement to confirm the value of the target equity. Zhejiang Chenfeng Technology Co., Ltd. (SHSE:603685) entered into supplement agreement to acquire an unknown stake in Liaoning Guosheng Power Development Co., Ltd and Naiman Banner Guangxing Power Distribution Co., Ltd from Guosheng Power Sales Co., Ltd for approximately CNY 130 million on June 19, 2023. Zhejiang Chenfeng Technology will acquire 100% stake in Liaoning Guosheng Power Development for CNY 19.693176 million and 85% stake in Naiman Banner Guangxing Power Distribution for CNY 109.487815 million.

For the year ended, March 31, 2023, Liaoning Guosheng Power Development Co., Ltd and Naiman Banner Guangxing Power Distribution Co., Ltd had total asset is approximately CNY 345 million, net asset is CNY 75.3 million, operating income of CNY 9.8456 million, operating profit of CNY 0.4979 million and net profit of CNY 0.5021 million. The transaction was approved by Zhejiang Chenfeng Technology Co., Ltd first interim meeting of the third board of directors and third board of supervisors.