China Longyuan Power Group Corporation Limited (00916) has announced that its board has approved a plan for its wholly-owned subsidiary, Shanghai Investment Company, to enter into an acquisition agreement with Xinyuan No. 1 Fund. The agreement is scheduled to be signed no later than September 30, 2026.

Under the terms of the deal, Shanghai Investment Company will conditionally acquire 100% of the equity interest in Puyang County Vision New Energy Co., Ltd., the target company, from Xinyuan No. 1 Fund. The consideration for the acquisition is set at RMB 149 million, with the final price not to exceed the appraised value filed with state-owned asset regulatory authorities.

The target company is responsible for the investment and operation of the Henan Kunwu 100MW wind power project. Prior to the completion of this transaction, the target company is not a subsidiary of China Longyuan Power. Upon completion, the target company will become a subsidiary, and its financial results will be consolidated into the group's financial statements.

The purpose of this acquisition is to optimize the company's industrial layout in the northern Henan region and enhance its market share. The Kunwu project, built by the target company, is a key provincial-level wind power initiative and has already achieved grid connection and power generation.

Following the completion of the transaction, China Longyuan Power will further increase its market presence in the northern Henan area, creating synergies with existing projects and refining the regional industrial structure.