DeTai New Energy Group Limited (SEHK:559) entered into a sale and purchase agreement to acquire a 52% stake in Power Gas (Hong Kong) from Rich Rite Limited for approximately HKD 190 million on August 6, 2021. The consideration for the transaction will be satisfied by issue of the Convertible Bonds in the following manners: i) HKD 46.3 million by way of the issuance of the Tranche I Convertible Bond (the principal amount of which is equivalent to 25% of the aggregate principal amount of the Convertible Bonds) to the Vendor upon the Completion, ii) subject to the Completion having taken place, HKD 46.3 million by way of the issuance of Tranche II Convertible Bond (the principal amount of which is equivalent to 25% of the aggregate principal amount of the Convertible Bonds) to the Vendor within five Business Days (or such later date as may be agreed between the Purchaser and the Vendor) upon the receipt of written notice by the Purchaser from the Vendor of the commencement of construction work under the Natural Gas Project (the ??Natural Gas Project Construction??) or upon the Completion (whichever is later); and iii) HKD 92.6 million by way of the issuance of Tranche III Convertible Bond (the principal amount of which is equivalent to 50% of the aggregate principal amount of the Convertible Bonds) to the Vendor within five Business Days (or such later date as may be agreed between the Purchaser and the Vendor) upon the receipt of written notice by the Purchaser from the Vendor of the commencement of lawful operation of natural gas substations and natural gas pipeline under the Natural Gas Project (the ??Natural Gas Project Operation??). For the year ended on December 31, 2020, Power Gas reported loss after taxation of HKD 3.174 million and loss before taxation of HKD 3.174 million. The transaction is subject to completion of due diligence and regulatory approvals. The transaction is expected to close on September 17, 2021. DeTai New Energy Group Limited (SEHK:559) cancelled the acquiistion of 52% stake in Power Gas (Hong Kong) Limited from Rich Rite Limited on November 12, 2021. The board considers that the termination of the sale and purchase agreement will not have any material adverse impact on the financial position and operation of the Group.