SUPPLEMENTAL ANNOUNCEMENT - CONTINUING CONNECTED TRANSACTION IN RELATION TO PROVISION OF OPERATION SERVICES

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.GCL New Energy Holdings Limited协鑫新能源控股有限公司 (Incorporated in Bermuda with limited liability) (Stock code: 451) SUPPLEMENTAL ANNOUNCEMENT CONTINUING CONNECTED TRANSACTION IN RELATION TO PROVISION OF OPERATION SERVICES Reference is made to the announcement of GCL New Energy Holdings Limited (the “Company”) dated 2 July 2024 (the “Announcement”) in relation to provision of operation services. Unless otherwise stated terms used in this announcement have the same meanings as defined in the Announcement.The Board wishes to provide supplemental information in relation to the continuing connected transaction contemplated under the Nanjing Operation and Maintenance Management Service Agreement and the Zhongwei Operation and Maintenance Management Service Agreement (collectively the “Agreements”).PRICING POLICY The service fee for each of the Agreements is determined on a cost-plus methodology. The Company has a standard price list for each type of services to be provided to the customers under the Agreements and is applied to all its customers. Standard fees include (i) labour fees; and (ii) maintenance fees.Generally the operation and maintenance of energy storage power stations requires 6-7 personnel with roles ranging from duty officers to production managers. The annual wage expenditure ranges from approximately RMB900000 to RMB1000000 per station.Maintenance fees include among others consumables and spare parts housing for its personnel at the station specialized tools and equipment treatment of hazardous materials. The annual expenditure for maintenance fees ranges from approximately RMB280000 to RMB470000 per station but depends on the size and complexity of the station.? 1 ?In addition to the above standard fees additional fees are chargeable and will be adjusted depending on the specific needs and requirements of its customers. For instance some customers may require additional services such as fire system inspection lightning protection detection and safety standardization construction. The annual expenditure for these requirements ranges from approximately RMB190000 to RMB 250000 depending on the requirements from the customers.The Company also charges a reasonable profit margin of approximately 10% to 15% which is generally considered the standard for the provision of services in this sector. This range represents a healthy balance between generating sufficient returns for shareholders while maintaining competitive pricing in the market.The Company also consistently cross-references its pricing model with rates and profit margin offered to independent third-party customers for analogous services in comparable energy storage projects. This practice serves to validate the fairness of the Company’s pricing strategy ensure alignment with industry standards and expectations and maintain transparency and justifiability in pricing decisions.INTERNAL CONTROL In addition to the annual review by the auditors and independent non-executive Directors pursuant to the requirements of Chapter 14A of the Listing Rules the Company has implemented or will implement the following internal control measures: a) The compliance department and other departments responsible for the connected transactions of the Company will assess the terms of proposed connected transactions such as pricing with reference to its expected costs price level of the independent third parties and profit margin of similar services in the market. The compliance department of the Company will review and monitor the total transaction amount under the Agreements to ensure that the aggregate transaction amount will not exceed the annual cap of the Agreements. Such compliance department will be monitored by company secretary of the Company.b) All departments must report and consult to the compliance department in advance in relation to the connected transaction agreements that occur in the company’s daily operations.c) The management of the Company will determine the procedures for disclosure of each connected transactions in accordance with the Listing Rules and immediately organizes the implementation and the relevant department including financial department shall assist in providing all the information required for disclosure.? 2 ?d) The independent non-executive Directors will conduct annual independent review on the above control measures and the transactions to ensure that the transactions are entered into through arm’s length negotiations and on normal commercial terms are fair and reasonable and are carried out pursuant to the terms of the transactions; and e) The auditors of the Company would also conduct an annual review on the pricing basis and the annual cap under the Agreements. The Company will facilitate the provision of necessary information to its independent non-executive Directors and auditors for the purpose of such review.The Board is of the view that the above measures and procedures can ensure that the pricing and other contract terms for the continuing connected transactions of the Group are on normal commercial terms fair and reasonable and in the interests of the Company and the Shareholders as a whole and that the continuing connected transactions are conducted as agreed under the agreements and in compliance with Chapter 14A of the Listing Rules.Saved as disclosed above all other information as set out in the Announcement remains unchanged and shall continue to be valid for all purposes. This announcement is supplemental to and should be read in conjunction with the Announcement.By order of the Board GCL New Energy Holdings Limited协鑫新能源控股有限公司 Zhu Gongshan Chairman Hong Kong 11 July 2024 As at the date of this announcement the Board comprises Mr. Zhu Gongshan (Chairman) Mr. Zhu Yufeng Mr.Wang Dong and Mr. Gu Zengcai as executive Directors of the Company; Ms. Sun Wei Mr. Yeung Man Chung Charles and Mr. Fang Jiancai as non-executive Directors of the Company; and Mr. Lee Conway Kong Wai Mr.Wang Yanguo Dr. Chen Ying and Mr. Cai Xianhe as independent non-executive Directors of the Company.?3?