Zhejiang Southeast Electric Power Company Limited 

Announcement on Share Increase by Actual Controller and its Concert Party

On 25 August 2009, Zhejiang Southeast Electric Power Company Limited (the 'Company') was notified by its actual controller, Zhejiang Provincial Energy Group Corp. ('Zheneng Group') that Hong Kong Xingyuan Investment & Trading Company Limited ('Hong Kong Xingyuan'), a subsidiary of Zheneng Group, increased shares of the Company through securities trading system of Shanghai Stock Exchange on  25 August 2009. 

1.    Information on Actual Controller and its Concert Party

Zhejiang Provincial Electric Power Development Co., Ltd., the largest shareholder of the Company, holds 799,963,200 shares of the Company, which accounts for 39.80% of the total share capital of the Company. Zhejiang Provincial Electric Power Development Co., Ltd. is a wholly-owned subsidiary of Zheneng Group and therefore, Zheneng Group is the actual controller of the Company.

Hong Kong Xingyuan is a wholly-owned subsidiary of Zhejiang Xingyuan Investment Co., Ltd. Zheneng Group owns 100% equity interest in Zhejiang Xingyuan Investment Co., Ltd.

2.     Information on Share Increase

On  25 August 2009, Hong Kong Xingyuan increased 345,600 shares of the Company through securities trading system of Shanghai Stock Exchange, accounting for 0.02% of the total share capital of the Company. Hong Kong Xingyuan did not hold any share of the Company before the share increase.

After the share increase, Zheneng Group through Zhejiang Provincial Electric Power Development Co., Ltd. and Hong Kong Xingyuan holds 800,308,800 shares of the Company in aggregate, accounting for 39.82% of the total share capital of the Company.

3.   Subsequent Share Increase Plan

Depending on market condition, Hong Kong Xingyuan proposes to continue to increase shares of the Company through securities trading system of Shanghai Stock Exchange within next 12 months from  25 August 2009. The shareholding percentage after share increase will not exceed 2% of the total share capital of the Company (including share increase this time).

4.    Price of shares increased this time: not higher than 0.50 USD per share.

5.    Zheneng Group and its concert party undertake not to decrease shares held in the Company within the period of the implementation of share increase plan and statutory period.

Pursuant to relevant regulations including Listing Rules of Shanghai Stock Exchange and the Guidelines for the Increase of Shares by Shareholders and Their Concerted Parties of Listed Companies, The Company will monitor relevant information of share increase by actual controller and its concert party and disclose relevant information on timely basis.   

  Board of Directors

   Zhejiang Southeast Electric Power Company Limited 
   

                                                                                26 August 2009