Huadian Power International Corporation Limited (SEHK:1071) entered into an agreement to acquire an minority stake in Inner Mongolia Huadian Mengdong Energy Co., Ltd. and Tianjin Huadian Fuyuan Thermal Power Co., Ltd from CCB Financial Asset Investment Co., Ltd. and Agricultural Bank of China Financial Assets Investment Co., Ltd. for CNY 1.5 billion on March 21, 2021. Under the terms of transactions, the transaction price of Mengdong Energy's 45.15% equity is tentatively set at 1 billion by issuing common shares of 20 million and bonds of 980.01 million, the transaction price of Fuyuan Thermal Power's 36.86% equity is tentatively set at 500.2 million by issuing common shares of 10 million and bonds of 490.15 million, and the transaction price of the underlying asset is tentatively determined. As per update on July 30, 2021, Huadian Power International Corporation Limited will issue 6.8 million shares as consideration. For the year ended December 31, 2020, Inner Mongolia Huadian Mengdong Energy reported total assets of CNY 2.31 billion, total liabilities of CNY 41.49 million, owners equity of 2.26 billion, revenue of CNY 338.99 million, total profit of CNY 148.59 million and net profit of CNY 125.53 million. For the year ended December 31, 2020, Tianjin Huadian Fuyuan Thermal Power reported total assets of CNY 1.64 billion, total liabilities of CNY 551.17 million, owners' equity of 1.09 billion, revenue of CNY 862.5 million, total profit of CNY 90.06 million and net profit of CNY 67.09 million. This transaction has been reviewed and approved at the 10th meeting of the 9th Board of Directors of the listed company. The deal is subject to approval from shareholder and China Securities Regulatory Commission approval. The transaction has been reviewed and approved by the counterparty CCB Investment and Bank of China Investment's internal decision-making bodies. The shareholders of Huadian Power International Corporation Limited has approved the transaction. As on August 19, 2021, the Merger, Acquisition and Reorganization Examination Committee of the Listed Companies of CSRC held the 21st working conference for 2021, reviewed the acquisition of asset through issuance of shares and convertible bonds and gave unconditional approval. Huatai United Securities Co., Ltd. acted as a financial adviser to Huadian Power International Corporation. Dentons China and BDO China SHU LUN PAN Certified Public Accountants LLP acted as legal advisor and accountant to Huadian Power International Corporation Limited.

Huadian Power International Corporation Limited (SEHK:1071) acquired minority stake in Inner Mongolia Huadian Mengdong Energy and Tianjin Huadian Fuyuan Thermal Power Co., Ltd from Agricultural Bank of China Financial Assets Investment Co., Ltd. and CCB Financial Asset Investment Co., Ltd. on September 16, 2021.