NXZ plans to make significant adjustments to the original major asset restructuring plan

According to the announcement from Baota Industrial (000595.SZ), the targeted company, Electric Power Investment New Energy, has entered the supplementary funding directory for renewable energy electricity prices for the third and fourth phases of the Sun Mountain Wind Farm project. However, it has not yet entered the first batch of compliant projects for renewable energy generation subsidies published by the State Grid and the Southern Grid. Based on the current principles for the allocation of subsidy funds by the Ministry of Finance, there is a certain degree of uncertainty regarding the future recovery of subsidy funds for the third and fourth phases of the Sun Mountain Wind Farm project.

After preliminary planning, in order to better protect the rights and interests of the listed company and minority shareholders, and to accelerate the restructuring process, the parties involved intend to separate the third and fourth phases of the Sun Mountain Wind Farm project from the assets to be injected and adjust the pricing for the asset injection transaction.

Considering that the price difference between the injected assets and the divested assets has decreased after the adjustment of the major asset restructuring plan, the listed company intends to pay the price difference in cash for the injected and divested assets, and will no longer issue shares or raise matching funds.

After preliminary planning, in order to better protect the rights and interests of the listed company and minority shareholders, the company intends to separate the third and fourth phases of the Sun Mountain Wind Farm project from the injected assets and adjust the pricing for the asset injection transaction. The counterparty remains Ningxia Electric Power Investment, the injected assets will still be 100% equity of Electric Power Investment New Energy, and the divested assets will still be all assets and liabilities of the listed company except for retained cash, other current assets (to be deducted input tax), long-term equity investments (75% equity of Guilin Haiwei, 45% equity of Beijing Xizhou Sales), other equity instrument investments (16% equity of Northwest Asia Olympic), and intangible assets (land for diesel engines). The price difference between the injected and divested assets will be paid in cash by the listed company, and the proposed adjusted plan will not involve the issuance of shares or the raising of matching funds by the listed company