Xinte Energy : VOLUNTARY ANNOUNCEMENT - BUSINESS UPDATE - ENTERING INTO THE STRATEGIC COOPERATION SALE AND PURCHASE AGREEMENT

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XINTE ENERGY CO., LTD.

อतঐ๕ٰ΅Ϟࠢʮ̡

(A joint stock company incorporated in the People's Republic of China with limited liability)

(Stock code: 1799)

VOLUNTARY ANNOUNCEMENT

BUSINESS UPDATE

ENTERING INTO THE STRATEGIC COOPERATION SALE AND

PURCHASE AGREEMENT

This announcement is made by the board of directors (the "Board") of Xinte Energy Co., Ltd. (the "Company", together with its subsidiaries, the "Group") on a voluntary basis to keep the shareholders and potential investors of the Company informed of the latest development of the Group.

On 11 March 2021, the Company and its subsidiaries, Xinjiang Xinte Crystal Silicon Hightech Co., Ltd.* (อᖛอत౺᜗ᾼ৷߅ҦϞࠢʮ̡) and Inner Mongolia Xinte Silicon Materials Co., Ltd.* (ʫႆ̚อतᾼҿࣘϞࠢʮ̡) entered into a strategic cooperation sale and purchase agreement (the "Strategic Cooperation Sale and Purchase Agreement") with Qinghai Gaojing Solar Energy Technology Co., Ltd.* (ڡऎ৷౻˄ජঐ߅ҦϞࠢ ʮ̡) ("Qinghai Gaojing"). Pursuant to the Strategic Cooperation Sale and Purchase Agreement, the Group shall sell 152,400 tons of polysilicon in total to Qinghai Gaojing during the period from July 2021 to December 2025, and the price of the orders will be negotiated on a monthly basis.

Based on the latest price of polysilicon announced by PVInfoLink, the total sum under the Strategic Cooperation Sale and Purchase Agreement is approximately RMB16.916 billion (including tax).

Based on publicly available records and to the best knowledge of the Board having made due inquiries, as of the date of this announcement, Qinghai Gaojing and its ultimate beneficial owner, Mr. Xu Zhiqun, are third parties independent from the Company and the connected persons of the Company, hence the transaction under the Strategic Cooperation Sale and Purchase Agreement does not constitute a connected transaction under Chapter 14A of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules"). In addition, the transaction under the Strategic Cooperation Sale and Purchase Agreement is conducted in the ordinary course of business of the Company, and therefore does not constitute a notifiable transaction under Chapter 14 of the Listing Rules.

The Board believes that the entering into of the Strategic Cooperation Sale and Purchase Agreement will facilitate the stable sales of polysilicon products in the Group's ordinary course of business, safeguard the daily operations of the Group, and is in line with the future development of the Group. It will also further enhance the Group's position in the new energy industry. The Board hereby declares that no forecast or estimate has been made on the Group's profit in relation to the entering into of the Strategic Cooperation Sale and Purchase Agreement.

Shareholders and potential investors of the Company are advised to exercise caution when dealing in the shares of the Company.

By order of the Board

Xinte Energy Co., Ltd.

Zhang Jianxin

Chairman

Xinjiang, the PRC

11 March 2021

As at the date of this announcement, the Board of the Company consists of Mr. Zhang Jianxin, Mr. Yin Bo and Mr. Xia Jinjing as executive directors; Mr. Zhang Xin and Ms. Guo Junxiang as non-executive directors; and Mr. Qin Haiyan, Mr. Yang Deren and Mr. Wong, Yui Keung Marcellus as independent non-executive directors.

*

for identification purpose only