Puxing Energy Completes the Acquisition of 100% of Equity Interests of Quzhou Puxing

HONG KONG, CHINA - Media OutReach - 30 September 2020 - Puxing Energy Limited ("Puxing Energy" or the "Company", together with its subsidiaries, the "Group"; stock code: 00090), the leading clean energy provider in Zhejiang Province, is pleased to announce that, with reference to the share purchase agreement ("Share Purchase Agreement") entered into between Zhejiang Puxing Deneng Natural Gas Power Co., Ltd. ("Deneng Power Plant"), an indirect wholly-owned subsidiary of the Company, and Shanghai Pu-Xing Energy Limited in relation to the acquisition of 100% of the equity interests of Quzhou Puxing Gas Turbine Thermal Power Co., Ltd. ("Quzhou Puxing") at a consideration of RMB333,398,965.29 (subject to adjustment) dated 6 May 2020, which such acquisition had been approved by the shareholders of the Company on 30 July 2020, all the conditions precedent set out in the Share Purchase Agreement had been fulfilled and the completion took place on 30 September 2020.

Upon the completion, the Company holds 100% of the equity interests in Quzhou Puxing and Quzhou Puxing becomes an indirect wholly-owned subsidiary of the Company. Accordingly, the financial information of Quzhou Puxing will be consolidated into the accounts of the Group.

As disclosed in the circular of the Company dated 24 June 2020, the final amount of the consideration for the acquisition is subject to adjustment based on the net asset value of Quzhou Puxing in the completion audit report issued within 30 days after the completion date, minus the accumulated undistributed profit of Quzhou Puxing as at 31 December 2019 (the "Adjusted Consideration"). Further announcement will be issued by the Company upon confirmation of the Adjusted Consideration.

Mr. Wei Junyong, Chairman of Puxing Energy, concluded, "As an enterprise mainly engaging in development, operation and management of natural gas-fired power plants in China, the completion of the acquisition of Quzhou Puxing takes a solid step for Puxing Energy to expand and strengthen its existing clean energy business, not only further expand its installed and heating capacities, but also strengthen the Group's presence and business operation in Zhejiang Province, China, in order to boost its business performance. In the future, the Group will continue to uphold the concept of 'Energy+Technology' on one hand and will keep on following up and participating in the power market reforms in Zhejiang Province on the other hand, so as to actively explore business development opportunities. The Group is dedicated to transforming into an integrated energy supplier, enhancing growth potential in the long run and maximizing benefits and returns to shareholders."

About Puxing Energy

Puxing Energy is a leading clean energy provider in Zhejiang Province. It is mainly engaged in development, operation and management of natural gas-fired power plants. Upon completion of the acquisition of Quzhou Puxing, the Group owns five natural gas-fired power plants with a total installed capacity of approximately 688MW (including 731kW rooftop photovoltaic power generation facilities) and a maximum heating capacity of approximately 360 tons per hour.