China Three Gorges New Energy Corp. signed a definitive agreement to acquire the remaining 50% stake in Shangdu Tianrun Wind Power Co., Ltd. from Beijing Tianrun New Energy Investment Co., Ltd. for approximately CNY 130 million in cash on June 21, 2012. Of the purchase consideration, CNY 63.48 million will be paid within five days of closing of the transaction and the remaining will be paid after the completion of the issuance of the examination reports and the final inspection reports for the wind farm projects of Shangdu Tianrun. Shangdu Tianrun reported total assets of CNY 688 million as on December 31, 2011. For the year ended December 31, 2011, Shangdu Tianrun reported revenues of CNY 40.76 million, net loss before tax of CNY 4.99 million and net loss after tax of CNY 4.99 million. The directors of Xinjiang Goldwind consider that the transaction is fair and reasonable and is in the interest of the company and the shareholders. The transaction is expected to close by the end of June 2012. Beijing Tianrun will apply the sale proceeds to its working capital. Ernst & Young acted as accountant to Xinjiang Goldwind.