China Longyuan Power Group Corporation Limited announced that its wholly-owned subsidiary Inner Mongolia Longyuan New Energy Development Co., Ltd. will purchase 51% of Guohua (Cangzhou) Integrated Energy Co., Ltd. from Guohua Energy Investment Co., Ltd. for RMB33.94 million.

Upon completion Guohua Cangzhou will be consolidated as a subsidiary, enlarging China Longyuan’s presence in large-scale photovoltaic power generation and green hydrogen–green ammonia demonstration projects.

Key deal terms • Consideration: RMB33.94 million, to be settled in one lump sum within 60 days after the agreement takes effect. • Valuation: Independent appraiser Pan-China Appraisal valued 100% of Guohua Cangzhou at RMB66.55 million (income approach, 30 Nov 2025 reference date). • Transition arrangements: Operating results during the transition period will be borne by the buyer in proportion to equity interest; no price adjustment linked to interim profits or losses.

Financial profile of the target • Total assets: RMB4.80 billion as at 31 Dec 2025. • Net assets: RMB25.91 million. • 2025 net profit: RMB23.05 million (first full financial year). The company’s current phase includes 1,090 MW of grid-connected PV capacity and the ongoing construction of a green hydrogen-ammonia complex designed for 14,000 tonnes of hydrogen and 50,000 tonnes of ammonia annually.

Strategic rationale Management highlighted that the acquisition supports China Longyuan’s strategy to build large wind-solar bases coupled with hydrogen production, broaden its footprint in strategic emerging industries and strengthen long-term competitiveness. The purchase will be funded with internal resources and is not expected to impair the group’s financial position.

Connected-party nature and compliance CHN Energy holds 58.72% of China Longyuan and indirectly controls both the seller and the target; the deal is therefore a connected transaction under Hong Kong Listing Rules. With applicable percentage ratios below 5%, it requires announcement and annual reporting but is exempt from independent shareholders’ approval. Two directors linked to CHN Energy abstained from the board vote; the remaining directors (including all independent non-executive directors) consider the terms fair and reasonable.

Completion will occur once payment is made and all regulatory and state-owned asset approvals are secured. China Longyuan will then begin consolidating Guohua Cangzhou’s results.