Zhitong Finance App News, Zhonghuan New Energy (01735) announced that on January 10, 2024, Huainan Hi-Tech Investment Holding Group Co., Ltd. (Huainan Hi-Tech), Huainan Economic Development Holdings (Group) Co., Ltd. (Huainan Economic Development), the company's indirect wholly-owned subsidiary, Zhonghuan (Anhui) Green Power Development and Construction Co., Ltd. (ZTE), and the company's indirect wholly-owned subsidiary, Zhonghuan Digital (Jiangsu) Intelligent Technology Co., Ltd. (Zhonghuan Mathematics), the parties to the agreement plan to jointly sign an investment cooperation agreement in the Huainan High-tech Industrial Development Zone. Develop zero-carbon parks.

The total investment for the construction project is estimated at RMB 1 billion and will be implemented in the core area of the incremental distribution grid within the Huainan High-tech Industrial Development Zone. The project is tentatively scheduled to be carried out in two stages. The first phase will mainly include rooftop photovoltaic construction, grid-connection planning, the construction of a new 6 MW/12 MWatt-hour energy storage station, the construction of a new integrated energy station to provide compressed air and process ice water, the construction of a new digital platform for virtual power stations, and the construction of a “green zero carbon (Huainan) capacity building base” to provide zero-carbon supporting enterprise services. The second phase will include construction of 100-150 MW peak centralized photovoltaics, construction of 100 MW/200 MW centralized energy storage, construction of a new integrated energy station to provide compressed air and process ice water, new construction of new supporting facilities such as electric vehicle power exchange stations and charging piles, and installation of transformers, and other planned rooftop photovoltaic construction in the region.

Huainan Hi-Tech, Huainan Economic Development and Central Green Power will set up project companies within 30 days from the date the agreement is signed to invest in the construction project. The registered capital of the project company is tentatively set at RMB 400 million (subject to industrial and commercial registration). The project company will hold 5%, 30% and 65% of Huainan Hi-Tech, Huainan Economic Development and Central Green Power respectively, and shareholders will contribute in cash according to their respective shareholding ratios.

Huainan Hi-Tech, Huainan Economic Development and Central Mathematics will establish operating companies within 30 days from the date the agreement is signed. The registered capital of the operating company is tentatively set at RMB 10 million (subject to industrial and commercial registration). The operating company will hold 5%, 30% and 65% of the interests of Huainan Hi-Tech, Huainan Economic Development and Central Digital Technology, respectively, and shareholders will contribute in cash according to their respective shareholding ratios.

The Board believes that the investment cooperation drawn up and outlined in the agreement will enable the Group to utilize its experience and capabilities in the low-carbon smart factory/park market. The Board also believes that investment cooperation can expand the Group's business opportunities, expand its revenue streams and enhance its financial performance.