China Longyuan Power Group Corporation Limited (“Longyuan Power”, 00916) has agreed to inject RMB 161.31 million into its 51%-owned subsidiary Guoneng Tengxian Energy Development Co., Ltd., under a pro-rata capital increase plan signed on 26 June 2026. Joint-venture partner CHN Energy Guangxi Electric Power Co., Ltd. will contribute RMB 154.99 million, keeping the ownership split unchanged at 51%/49%.

The combined RMB 316.30 million (USD 43.7 million) infusion will lift Guoneng Tengxian’s registered capital from RMB 1.36 billion to RMB 1.68 billion. Both shareholders will fund their respective contributions in cash, no later than 31 March 2027, using internal resources.

Proceeds are earmarked primarily for construction, installation and equipment procurement across six Guangxi wind-power projects—Dongli, Dali, Baihuashan and three others—totaling 820 MW. Cumulative investment in these projects has reached RMB 4.45 billion, with capital funding needs of RMB 1.30 billion; the present capital raise addresses the remaining RMB 316.30 million requirement after deducting RMB 980.12 million of paid-up capital.

Guoneng Tengxian’s audited performance (China Accounting Standards): • FY 2024 net profit after tax: RMB 1.61 billion • FY 2025 net profit after tax: RMB 0.43 billion • Total assets as of 31 Dec 2025: RMB 52.53 billion • Net assets as of 31 Dec 2025: RMB 14.46 billion

CHN Energy, Longyuan Power’s controlling shareholder with a 58.72% stake, owns CHN Energy Guangxi Company, making the latter a connected person under Hong Kong Listing Rules. As the applicable percentage ratios for the transaction exceed 0.1% but are below 5%, the deal is classified as a connected transaction subject to announcement and annual reporting requirements only; independent shareholder approval is not required.

Longyuan Power’s board—excluding two directors holding positions within CHN Energy—unanimously concluded that the capital increase is on normal commercial terms, fair, reasonable and in the interests of the company and its shareholders. Post-transaction, Guoneng Tengxian remains a non-wholly-owned subsidiary of Longyuan Power, and no material impact on the group’s overall financial position or operating results is expected.