CHINA POWER (02380) announced that on September 12, 2025, the company, Yanchang Petroleum Mining, Sichuan Company, and the target company entered into an equity transfer agreement. The company intends to acquire a 31% equity stake in Dazhou Energy from Sichuan Company for a consideration of RMB 31 million, plus capital commitments and post-closing capital contributions totaling RMB 427.8 million, for an aggregate amount of RMB 458.8 million. Additionally, Yanchang Petroleum Mining plans to acquire a 49% equity stake in Dazhou Energy.

Dazhou Energy is primarily engaged in power generation, transmission, distribution, and heat production and sales businesses. Dazhou Energy directly holds the development rights for the "Northeast Sichuan High-Efficiency Clean Coal Power Comprehensive Utilization Integration Project." The first phase of development under this project involves the construction of two ultra-supercritical coal-fired power generation units with a total installed capacity of 2,000 megawatts located in Sichuan Province, China.

The announcement stated that the acquisition also introduces Yanchang Petroleum Mining as a strategic partner through the "coal-power integration" industrial model. Yanchang Petroleum Mining has committed to ensuring reliable coal supply and stable pricing through future long-term coal supply agreements to be signed with Dazhou Energy.

The company believes this strategic arrangement is expected to enhance Dazhou Energy's future revenue and profitability while establishing a solid foundation for synergistic development for all shareholders.