Progress Announcement on the “Quality Return Dual Improvement” Action Plan

Company: China Energy Conservation Solar Co., Ltd.
Stock Code: 000591
Announcement Number: 2025-49
Bonds: 127108 (Tai Neng Convertible Bond), 149812 (22 Solar G1), 148296 (23 Solar GK02)

On August 28, 2024, China Energy Conservation Solar Co., Ltd. disclosed the “Quality Return Dual Improvement” action plan aimed at enhancing the company’s core business capabilities, increasing investor returns, improving information disclosure quality, ensuring regulatory compliance, and reinforcing accountability among key personnel.

1. Strengthening Core Business

The company has been focusing on improving operational quality by encouraging efficiency and accountability. This includes linking total salary expenses to overall profit, thus motivating performance among staff.

(a) Domestic Photovoltaic Power Stations: The company is innovating its approach to support rural revitalization by developing high-quality projects in areas with low electricity restrictions, such as large-scale comprehensive projects in Shanghai. The company has completed one project acquisition and is working on several others. As of December 31, 2024, the total capacity of the company’s power stations, including operational, under construction, planned, and acquisition projects, is approximately 12.114 GW. In the future, the company will focus on expanding both the quantity and quality of photovoltaic projects, ensuring low risk and high returns on acquisitions.

(b) Overseas Power Station Business: The company has established an overseas business department and initiated discussions with parties in Sri Lanka, Indonesia, and Uzbekistan to promote projects in Southeast Asia and Central Asia. The company aims to leverage its technological and cost advantages in renewable energy to expand its presence in emerging markets along the “Belt and Road” initiative.

(c) Photovoltaic Product Manufacturing: The company is aligning its manufacturing with diverse market demands, creating a comprehensive service system that includes R&D, production, sales, and maintenance. In 2024, the domestic market saw continuous upgrades to high-power TOPCon modules, with a maximum power output of 720W. The company sold 2.14 GW of modules in the domestic market, while also developing integrated “photovoltaic+” solutions for various projects. Internationally, the company has made significant progress in sales, particularly in Papua New Guinea, Spain, Pakistan, Malaysia, and Cambodia.

(d) Quality and Efficiency Improvements: The company has implemented smart operations and technical upgrades to enhance operational efficiency and power generation. Various cost-reduction measures have been introduced, including drone inspections and equipment upgrades. The financing costs have decreased due to loan replacements and interest rate negotiations.

(e) New Quality Productivity: The company continues to cultivate new productive capacities, focusing on efficient new crystalline silicon batteries and photovoltaic station technologies. The development of offshore photovoltaic modules has been completed, and new technology reports for various energy storage solutions have been prepared.

2. Increasing Investor Returns

In 2024, the company completed a cash dividend distribution for the 2023 fiscal year, totaling 571 million yuan, which is 36.15% of the net profit attributable to shareholders. Additionally, the company increased the frequency of cash dividends, distributing 223 million yuan in the third quarter of 2024.

3. Enhancing Information Disclosure and Investor Communication

The company’s information disclosure has received an A rating from the Shenzhen Stock Exchange for three consecutive years. The annual performance briefing has become a regular event, with a semi-annual briefing added in 2024. The company participated in 17 investor engagement activities during the year, achieving a 100% response rate on its communication platform.

4. Adhering to Regulatory Compliance

The company emphasizes scientific governance and compliance, ensuring that major decisions follow necessary procedures and that all board meetings are conducted legally and transparently.

5. Strengthening Accountability Among Key Personnel

The company has implemented reforms for independent directors and organized special training for senior management to enhance their professional skills and awareness of responsibilities. Performance evaluations for senior management are linked to corporate performance, ensuring that income distribution reflects individual contributions.

This announcement is issued by the Board of Directors of China Energy Conservation Solar Co., Ltd. on April 24, 2025.