PUXING ENERGY (00090) announced that on March 30, 2026, its direct wholly-owned subsidiary, Puxing Energy (Hong Kong) Limited, and Lantian Power Plant intend to sell a combined 49% equity interest in Deneng to Shunfa Hengneng Co., Ltd. for approximately RMB 113 million. On the same day, Puxing Energy (Hong Kong) Limited also plans to divest its entire equity stake in Jingxing to Shunfa Hengneng Co., Ltd. for about RMB 147 million.

To comply with the Zhejiang Provincial Development and Reform Commission (Energy Bureau)'s requirements for the construction schedule of new energy storage projects, Deneng and Jingxing require additional capital investment for their respective energy storage initiatives. However, such additional investment does not align with the group's long-term strategic direction. Furthermore, according to an announcement released by State Grid Zhejiang Electric Power Co., Ltd. in October 2025 regarding electricity procurement prices for commercial and industrial users, the procurement price for energy storage projects has increased significantly since the beginning of the year, while the discharge price remains fixed. This has severely compressed the spread between charging and discharging prices, adversely affecting the projected profitability of the storage projects.

After careful consideration of the capital requirements, recent regulatory and electricity price environment, and the group's overall strategic direction, the board concluded that utilizing internal resources or seeking external financing to fund these investments is not in the group's long-term interests. Consequently, the company has decided to fully divest its interests in Deneng and Jingxing. The disposals will enable the group to streamline its operations, optimize resource allocation, and enhance overall capital efficiency.