Changyuan Donggu has announced its intention to acquire a 100% stake in Xiangyang Kanghao Electromechanical Engineering Co., Ltd., a subsidiary currently owned by Hubei Xinyuan Power Technology Group. This acquisition will be executed through the issuance of shares, with a total transaction value of RMB 5.01 billion. Concurrently, the company intends to issue additional shares to a select group of no more than 35 specific investors, aiming to raise up to RMB 2 billion in counterpart funding (matching funds).

This strategic move constitutes both a related-party transaction and a significant asset restructuring. However, it's important to note that this restructuring does not involve a restructuring for the purpose of listing. The issue price for the shares has been set at RMB 29.75 per share, with a planned issuance volume of 168 million shares. These newly issued shares will account for 34.19% of the company's total share capital post-issuance.

The proposed transaction is still subject to several key approvals. It requires the green light from the shareholders' meeting, thorough review by the Shanghai Stock Exchange, and final registration consent from the China Securities Regulatory Commission before it can proceed.