On 30 October 2023, Pingwei III Power Plant, a non wholly-owned subsidiary of the Company, as the Seller, entered into four CEA Sale and Purchase Agreements with four Purchasers respectively, pursuant to which Pingwei III Power Plant will sell its unused Carbon Emission Allowances to each of the Purchasers. As at the date of this announcement, SPIC owns approximately 62.89% of the issued share capital of the Company. As SPIC is the ultimate controlling shareholder of the Company, SPIC, its subsidiaries and associates are connected persons of the Company within the meaning of the Listing Rules.

The Purchasers are either indirect subsidiaries or an associate of SPIC. Accordingly, the Purchasers are connected persons of the Company and the Transactions constitute connected transactions of the Company under the Listing Rules. The maximum aggregate consideration payable by the Purchasers to the Seller pursuant to the four CEA Sale and Purchase Agreements amounted to RMB145,614,560 (equivalent to approximately HKD158,000,000).

As certain applicable percentage ratios of the Transactions exceed 0.1% but are less than 5%, they are therefore subject to the announcement and reporting requirements but are exempt from the independent shareholders' approval requirement under Chapter 14A of the Listing Rules.