China Energine (01185.HK) announced that it has entered into an equity JV contract with the independent third-parties, Zhongneng Huali Investment, Suzhou Tepu Wind Energy Technology and Liaoning Juzi Industrial for establishing Gaizhou Wind Power, which will engaged in the construction and operation of 2 wind farms - Gaizhou Xutun Aerospace Wind Farm and Gaizhou Tazigou Wind Farm, each having a capacity of 48MW.

The JV company has a total investment of RMB855.31 million (HK$1.043 billion) and total registered capital of RMB171.07 million (HK$280.705 million).

China Energine, Zhongneng Huali Investment, Suzhou Tepu Wind Energy Technology and Liaoning Juzi Industrial will contribute RMB68.428 million (HK$83.482 million), RMB51.321 million, RMB47.9 million and RMB3.421 million respectively to the JV company's registered capital for 40%, 30%, 28% and 2% equity interests in the JV company respectively.

Zhongneng Huali Investment is obliged to purchase 30% equity out of the 40% equity of Gaizhou Wind Power to be held by China Energine within 12 months after connection of grid for electricity delivery has commenced at a consideration equal to an appraisal value but no less than the apportioned capital amount plus its capital gain to be calculated at a rate of 10% per annum from the capital injection date, leaving China Energine holding 10% equity thereafter. The board members will accordingly be changed then that one director to be assigned by China Energine will be replaced by one more director to be assigned by Zhongneng Huali Investment.

Suzhou Tepu Wind Energy Technology is also obliged to sell all its equity of Gaizhou Wind Power to Zhongneng Huali Investment within 6 months after the commencement of connection of grid for electricity delivery.