Datang Environment Industry Group Co., Ltd. (Datang Enviro) has agreed to purchase 38 scrapped wind turbines and related equipment from Guiguan Panzhou, a branch of Guangxi Guiguan Electric Power, for RMB 24.57 million under an asset-transfer agreement signed on 1 April 2026.
The consideration, equivalent to RMB 21.75 million excluding tax, was benchmarked against an independent appraisal conducted by Beijing Chinese Enterprise China Assets Evaluation Co. using the market approach. Payment will be settled in cash in two tranches: 10% within 10 working days after completion (RMB 2.46 million) and the remaining 90% (RMB 22.12 million) within three months, fully funded by internal resources and bank borrowings.
The target assets—comprising 38 dismantled turbines and ancillary equipment (49 items in total) from the Datang Sige Wind Farm in Guizhou—were originally acquired for approximately RMB 486.45 million. As at the 31 May 2025 appraisal reference date, their audited net book value stood at RMB 219.02 million, while the carrying “fixed asset disposal” value was RMB 23.97 million. The appraised market value of RMB 21.75 million reflects prevailing recyclable-material prices and includes dismantling and transportation costs to be borne by recyclers.
Because Guiguan Panzhou is indirectly controlled by China Datang—Datang Enviro’s 78.96% controlling shareholder—the transaction is classified as a connected transaction under Hong Kong Listing Rule 14A. Applicable percentage ratios exceed 0.1% but are below 5%, requiring public disclosure without the need for a shareholder circular or independent shareholders’ approval. Directors affiliated with China Datang abstained from voting on the deal.
Management expects the acquisition to serve as Datang Enviro’s inaugural project in renewable-energy solid-waste recycling, enabling revenue generation through processing turbine blades into building templates and extracting metals such as permanent-magnet steel, copper and steel for sale. The initiative aligns with China’s resource-recycling strategy and supports the company’s expansion into the broader resource-recycling industry.