SEP(SH:600021) Mei Ri Jing Ji Xin Wen·2025-09-09 15:44Core Viewpoint - Shanghai Electric has terminated the major asset acquisition of K-Electric Limited due to unmet closing conditions and changes in the business environment in Pakistan, marking the end of an 8-year disclosure requirement for the transaction [1][2][3]. Group 1: Termination Reasons - The termination of the acquisition was not a sudden decision but followed a rigorous internal decision-making process [2]. - The core reasons for termination include the failure to meet closing conditions and changes in the business environment in Pakistan [2][3]. - Since the initiation of the acquisition in 2016, KES Energy Company has consistently failed to meet the closing conditions outlined in the share purchase agreement [3]. Group 2: Impact on Company Operations - The termination of the acquisition is stated to have no significant adverse impact on the company's operations or financial status, as the closing conditions were never met [3]. - The company has maintained that the termination will not harm the interests of the company or its minority shareholders [3]. Group 3: Changes in Industry Environment - The energy structure in China has undergone significant changes, impacting the acquisition's viability [4]. - The domestic power industry is transitioning from traditional coal-based power to clean energy, with substantial government support for renewable energy sources [5][6]. - As of mid-2025, the company reported that clean energy accounted for 61.83% of its installed capacity, reflecting the broader industry trend towards green energy [6].