On 27 June 2019, Huadian Fuxin Energy Corporation Limited entered into the Shareholders Agreement with Jinshan Energy to jointly establish Changtu Wind Power with a total registered capital of RMB 102 million. According to the Shareholders Agreement, the Company agreed to contribute RMB 61.2 million in cash, accounting for 60% of the registered capital of Changtu Wind Power. After the establishment of Changtu Wind Power, it will become a subsidiary of the Company.

As Huadian directly and indirectly holds approximately 62.76% of the issued share capital of the Company, it is the Controlling Shareholder of the Company as defined under the Listing Rules. Jinshan Energy is indirectly held as to 38.5% of shares by Huadian and the financial results of Jinshan Energy are consolidated in the financial statements of Huadian, therefore Jinshan Energy is an associate of Huadian. Accordingly, Jinshan Energy is a connected person of the Company.

Pursuant to Chapter 14A of the Listing Rules, the entering into of the Shareholders Agreement constitutes a connected transaction of the Company. As one or more of the applicable percentage ratios in respect of the transaction under the Shareholders Agreement is more than 0.1% but less than 5%, the entering into of the Shareholders Agreement is subject to the reporting and announcement requirements but is exempt from the independent Shareholders' approval requirement. The scope of business of Changtu Wind Power includes: development, investment, construction, operation and management of wind power projects, comprehensive utilization and operation of wind farms, technical consultation and service of wind power generation technology; procurement of materials and equipment for wind power generation, production and sale of electricity.