China Power Xinjiang Energy and Chemical Group Dabancheng Wind Power Co., Ltd., agreed to acquire Zhangjiagang Hailu New Energy Co., Ltd., from Suzhou Hailu Heavy Industry Co., Ltd. (SZSE:002255) for CNY 1 billion on September 4, 2021. Pursuant to the terms of the transaction, the consideration will be paid in cash and if the share transfer is completed before October 31, 2021, China Power Xinjiang Energy and Chemical Group Dabancheng Wind Power Co., Ltd., promises to pay 90% of the equity transfer amount and settle the Zhangjiagang Hailu New Energy Co., Ltd.’s liabilities to the parent company before December 31, 2021. The work is not completed due to Suzhou Hailu Heavy Industry Co., Ltd.’s failure to transfer management rights in time. China Power Xinjiang Energy and Chemical Group Dabancheng Wind Power Co., Ltd., does not bear any responsibility for the consequences of completion. The final transaction price is subject to the final agreement signed after due diligence. As at June 30, 2021, Zhangjiagang Hailu New Energy Co., Ltd., had total assets of CNY 1.14 billion and total owner's equity attributable to the parent company of CNY 407.5 million. The transaction is subject to signing of final agreement after due diligence. The eighteenth (temporary) meeting of the fifth board of directors of Suzhou Hailu Heavy Industry Co., Ltd., held on September 4, 2021, reviewed and approved the transaction. This transaction does not need to be submitted to the general meeting of shareholders of Suzhou Hailu Heavy Industry Co., Ltd., for deliberation. China Power Xinjiang Energy and Chemical Group Dabancheng Wind Power Co., Ltd., cancelled the acquisition of Zhangjiagang Hailu New Energy Co., Ltd., from Suzhou Hailu Heavy Industry Co., Ltd. (SZSE:002255) on September 23, 2021. As of September 23, 2021, Both parties were unable to reach a consensus on key components of this asset transfer, and decided to terminate the pre-acquisition agreement.