Delong Composite Energy Group Co., Ltd. (SZSE:000593) signed an agreement to acquire 70% stake in Qujing Malong District Shengneng Gas Co., Ltd. from Gao Ge, Ai Xue and Hao Mengyu for approximately CNY 170 million on March 29, 2023. Ai Xue will sell 20% stake in Qujing Malong District Shengneng Gas for CNY 48.6 million, Hao Mengyu will sell 3% stake for CNY 7.29 million and Gao Ge will sell 47% stake for CNY 114.21 million. As per agreement, All parties agree that the equity transfer price will be paid in cash in two installments.

Within 5 working days after all parties sign the equity transfer agreement, Delong Composite Energy Group shall pay 30% of the equity transfer price, corresponding to CNY 51.03 million, of which, 30% of the equity transfer price shall be paid to Gao Ge, namely CNY 34.263 million; Pay Aixue 30% of Aixue's share transfer payment, namely CNY14.58 million; pay Hao Mengyu 30% of Hao Mengyu's share transfer payment, ie CNY 2.187 million. Within five (5) working days after Delong Composite Energy Group confirms in writing that the relevant clauses of the "Preconditions for Delivery" in the "Equity Transfer Agreement" are satisfied or exempted by Delong Composite Energy Group, second installment transfer payment precondition" has been fully fulfilled ten (10) days after Within a few days, Delong Composite Energy Group shall pay 70% of the equity transfer price of CNY 119.07 million. Delong Composite Energy Group will use own fund of CNY 170.1 million to fund the transaction.

Qujing Malong District Shengneng Gas has reported total assets of CNY 122.6228 million and Net assets of CNY 79.146 million on February 28, 2023. The board of Delong Composite Energy Group has approved the deal on March 29, 2023.