Yankuang Energy plans spin-off of Kasong Science and Technology to NEEQ

Yankuang Energy Group Company Limited proposes to spin off Kasong Science and Technology, a controlled subsidiary engaged in industrial lubricants and grease products, for quotation on the NEEQ. Kasong Science and Technology submitted its application for quotation on September 22, 2025. Luxi Mining, a subsidiary of Yankuang Energy, holds a 51% equity interest in Kasong Science and Technology, making it an indirect controlled subsidiary of Yankuang Energy.

The proposed spin-off aims to broaden Kasong Science and Technology's financing channels, enhance market competitiveness, and improve management systems. It is also expected to provide market price references for the company's valuation, better reflecting its intrinsic value. As of June 30, 2025, Kasong Science and Technology reported total assets of RMB355,491.54 thousand and net assets of RMB206,307.36 thousand. For the six months ended June 30, 2025, operating revenue was RMB153,471.19 thousand and net profit was RMB4,355.12 thousand.

Yankuang Energy will retain control of Kasong Science and Technology and continue to consolidate its financial statements, with the proposed spin-off not involving the issuance of new shares. The company will seek approval from relevant regulatory authorities, including the Hong Kong Stock Exchange. Shareholders are advised there is no assurance as to whether or when the proposed spin-off will proceed.