Yanzhou Coal's Dongfang Electrical stake cut in capital injection

Yanzhou Coal Mining (HKEX: 1171) announced a deemed disposal of a 47.168% equity interest in its non-wholly-owned subsidiary, Dongfang Electrical. WindSun Science & Technology will contribute RMB55.925687 million in cash to subscribe for additional registered capital. Post-transaction, WindSun will hold 50% of Dongfang Electrical, with Donghua Heavy Industry, a Yanzhou Coal subsidiary, retaining 47.168%. This will result in Dongfang Electrical no longer being consolidated in Yanzhou Coal's financial statements. The deal, subject to customary conditions, is considered a connected transaction under listing rules as Shandong Energy, Yanzhou Coal’s controlling shareholder, also has ties to WindSun Science & Technology. Dongfang Electrical's net profit for 2023 was RMB34.586 million.