Shanghai Electric Holding Group Co.,Ltd. agreed to acquire a 15.24% stake in SuZhou THVOW Technology. Co., Ltd. from Shanghai Electric Group Company Limited (SEHK:2727) for approximately CNY 560 million on June 20, 2022. As of July 14, 2022, Shanghai Electric Holding Group Co.,Ltd and Shanghai Electric Group Company Limited signed a letter of undertaking, according to which, Upon completion of the Transaction, SEGC will, based on the business characteristics of each listed company and the overall arrangement of state-owned assets management, complete the integration of the similar businesses of both listed companies by way of, including but not limited to, promoting the disposal of relevant assets by Shanghai Electric to Thvow Technology, promoting the disposal of relevant assets by Thvow Technology to Shanghai Electric, and promoting the disposal of relevant assets by either party or both parties to external parties, before December 31, 2025, subject to the strict compliance with the relevant approval procedures by all parties.

Shanghai Electric Group Company Limited board have approved the transaction. The Transaction is subject to the fulfillment of the relevant procedures of state-owned assets supervision and administration and the consideration and approval of shareholders of Shanghai Electric Group Company Limited. As on July 22, 2022, the transaction has been approved by shareholders of Shanghai Electric Group Company.