China Longyuan Power Group Corporation Limited and CHN Energy entered into the Investment Agreement, pursuant to which, the Company and CHN energy agreed to form the Joint Venture, among which, the Company will contribute RMB 1,530 million in cash to the Joint Venture, accounting for 51% of the total registered capital of the Joint Venture. Each shareholder shall bear limited liability for the Joint Venture to the extent of the amount of its capital contribution, and the Joint Venture shall be liable for its debts with all of its assets. If one party pledges all or part of its equity in the Joint Venture to a party other than the shareholder of the Joint Venture, in addition to the prior written consent by the other shareholder, such party shall ensure that it shall be clearly stipulated in the equity pledge agreement to be signed that (1) when its pledged equity of the Joint Venture is disposed of for any reason, the other shareholder has the right of first refusal under the same circumstances; (2) the other shareholder shall be entitled to jointly dispose of its shareholding at the same price and on the same conditions (at least not less favourable than the conditions on which the pledged equity is transferred to a third party who has acquired the equity in the Joint Venture as a result of the exercise of the pledge; (3) if the third party accepts to accept the pledged equity, the shareholder(s) who pledge(s) the equity shall be liable to the other shareholder for breach of contract.

The Joint Venture shall set up a board of shareholders consisting of all of its shareholders. According to the requirements of the project development, the project shall be developed and constructed integratedly by an investor, and through the joint operation of thermal power and new energy, the advantages of each power source will be complemented to achieve the most favourable economic benefits. Accordingly, the Company has co-operated with CHN Energy to establish the Joint Venture to fully utilise the Company's expertise and technological advantages in the field of new energy and leverage on the strengths of CHN Energy in the development, construction and operation of thermal power projects to jointly develop the project of the Badain Jaran (Gansu) Desert Base and to maximise the benefits therefrom.

Tianjin Longyuan, a wholly-owned subsidiary of CHN Energy, on 26 October 2023 to establish the Tianjin Joint Venture. The registered capital of the Tianjin Joint Venture is RMB 1 million, of which CHN Xiong'an contributed RMB 0.65 million, representing 65% of the total registered Capital of the Tianjin Joint Venture, and Tianjin Longyuan contributed RMB 0.35 million, representing 35% of the total registered capital. The Company will not consolidate the financial statements of the Tianjin Joint Venture.