Harbin Electric Company Limited (SEHK:1133) entered into an agreement to acquire an additional 5.2% stake in Harbin Boiler Co., Ltd., from China Huarong Asset Management Co., Ltd. (SEHK:2799) for approximately CNY 150 million on November 28, 2019. In related transactions, Harbin Electric Company Limited entered into two agreements to acquire additional 10.37% stake in Harbin Electric Machinery Co., Ltd., and 26.96% stake in Harbin Steam Turbine Works Co., Ltd for CNY 279.55 million. Before entering into agreements, Harbin Electric Company Limited has paid CNY 21.64 million as part of combined consideration and remaining shall be payable within five working days after entering into agreements.

For the period ended December 31, 2018, Harbin Boiler Co., Ltd. has reported total assets of CNY 18.09 billion, net profit before tax of CNY 204.47 million and net profit after tax of CNY 186.52 million. The Board of Directors of Harbin Electric Company Limited has been approved by the Board of Directors of Harbin Electric Company. Completion of the equity transfer shall take place upon completion of the registration procedures for the change in shareholding of Harbin Electric Machinery Co., Ltd., Harbin Boiler Co., Ltd. and Harbin Steam Turbine Works Co., Ltd.