China Shenhua updates on major asset acquisition and fundraising plan

China Shenhua Energy Company Limited announced the ongoing progress of its proposed A-share issuance and cash payment to acquire assets, including coal, pithead coal power, coal-to-liquid, coal-to-gas, and coal chemicals, from its controlling shareholder, China Energy Investment Corporation Limited. The company also plans to raise supporting funds through A-share issuance. This transaction, while a related party transaction, is not expected to constitute a major asset restructuring or alter the actual controller.

The company's A-shares, which were suspended from trading on August 4, 2025, resumed trading on August 18, 2025, following board and supervisory committee approvals of the transaction proposals on August 15, 2025. Intermediaries have begun due diligence, with audit and valuation processes progressing smoothly. China Shenhua will continue to fulfill disclosure obligations as the transaction advances.

However, the transaction faces inherent uncertainties as its implementation is contingent upon multiple approvals, including further board and general meeting approvals, Shanghai Stock Exchange review, China Securities Regulatory Commission registration, and other regulatory consents. Investors are advised to carefully review the detailed risk factors and decision-making procedures outlined in previous disclosures.