Background of Shanghai Shenneng New Energy Investment Co., Ltd.

In July 2005, Shanghai Shenneng Technology Development Co., Ltd. was restructured and established in order to implement the Renewable Energy Law of People's Republic of China (PRC) and the overall strategy of "revitalizing the city through science and education" of Shanghai Municipal Party Committee and Municipal Government, establish and implement Scientific Outlook on Development, further promote the development and utilization of renewable energy, and advocate a conservation-oriented city. After the reorganization, Shanghai Shenneng New Energy Investment Co., Ltd. was jointly established by Shenneng Group Co., Ltd., Shenneng Co., Ltd. and Shanghai Gas (Group) Co., Ltd. with a registered capital of 200 million yuan.

Announcement of establishment

Shanghai Shenneng New Energy Investment Co., Ltd. (hereinafter referred to as New Energy Company), which is jointly invested by our company, Shenneng (Group) Co., Ltd. and Shanghai Gas (Group) Co., Ltd., was formally incorporated a few days ago. The new energy company was restructured from the former Shanghai Shenneng Technology Development Co., Ltd. with a registered capital of 200 million yuan, of which the company contributed 60 million yuan, accounting for 30% of the registered capital; Shenneng (Group) Co., Ltd. contributed RMB 6,543.8 billion, accounting for 50% of the registered capital; Shanghai Gas (Group) Co., Ltd. invested 40 million yuan, accounting for 20% of the registered capital. The capital contribution of all shareholders is in cash.

The business scope of new energy companies includes technology development, resource utilization, project investment and industrial operation related to renewable energy, clean energy, bioenergy and reducing energy consumption and improving energy efficiency. Project investment, management and four technical services of electric power and energy-related environmental protection industries. The establishment of new energy companies will promote the development and utilization of renewable energy, increase the supply of green energy, improve the energy structure, ensure energy security and have a good market prospect.

Investing in new energy companies will expand the company's investment in the field of new energy, further enhance the company's status as an energy enterprise and market influence, and help to make the energy industry bigger and stronger.

According to the Articles of Association and the Listing Rules of Shanghai Stock Exchange, this investment belongs to the decision-making authority of the general manager of the company.