Gelonghui April 29th, China Energy Construction (03996.HK) announcementWintergamesinsaudiarabiaOn April 29, 2024, the board of directors considered and approved the proposal to sign a survival asset transfer agreement between Hunan Electric Power Line equipment Co., Ltd. ("Hunan Wire Rod Company"), a subsidiary of the company, and China Energy Construction Group Asset Management Co., Ltd.WintergamesinsaudiarabiaAccordingly, Hunan Wire Rod Company agreed to purchase some of the land use rights and above-ground buildings ("target assets") of No. 88 and No. 126 Kaipu Road, Tianxin District, Changsha City, Hunan Province, at a consideration of RMB 102 million by private agreement. After the completion of the relevant procedures for the target asset evaluation and filing, Hunan Wire Rod Company and the Asset Company will formally sign an agreement on the transfer of existing assets.

The target assets are the industrial real estate in two production areas located at No. 88 and 126 Xinkaipu Road, Tianxin District, Changsha City, Hunan Province, including 5 cases of land use rights and attachments such as all buildings, structures, ancillary facilities and equipment on the ground. and it includes water supply, power supply, drainage and other related facilities and immovable decoration which are inseparable from the real estate. And related land and property such as free transfer or government resumption in accordance with relevant policies. Target assets include total land area 85Wintergamesinsaudiarabia734.13 square meters, with a total area of 29.Wintergamesinsaudiarabia, 606.84 square meters.

Beijing Renda Real Estate Land assets Evaluation Co., Ltd. adopted the cost method to carry out the evaluation on February 20, 2024, and issued a "Real Estate valuation report" numbered Rendafang [2024] No. 202401107003854. The total valuation price of the target assets is 102054700 yuan. Both Asset Company and Hunan Wire Rod Company have reached the terms of the agreement on the transfer of existing assets on the basis of the ownership of the above-mentioned target assets by the Asset Company and the evaluation results of the Real Estate valuation report filed by Nengjian Group.

The target asset does not provide any form of security, including but not limited to the existence of collateral for the target asset, or any restrictions or obligations affecting the transfer of the target asset. The target assets have not been seized by any authorized agency and other compulsory measures.

After the transfer of the target assets, the property rights, certificates and accounts can be consistent, which will help to bring the target assets into the overall land and real estate collection scope of Hunan Wire Rod Company, promote the enterprise to "deal with difficulties" and invigorate idle assets.