China Shenhua Energy updates on major asset acquisition progress

China Shenhua Energy Company Limited provided an overseas regulatory announcement regarding the ongoing progress of its proposed share issuance and cash payment to acquire assets, along with raising supporting funds. The transaction involves acquiring coal, pithead coal power, coal-to-liquid, coal-to-gas, and coal chemicals from China Energy Investment Corporation Limited, which is the controlling shareholder. This initiative, while constituting a related transaction, is not expected to result in a major asset restructuring or a change in the company's actual controller.

The company's A shares were suspended from trading on August 4, 2025, and resumed on August 18, 2025, following board and supervisory committee approvals of the transaction proposals on August 15, 2025. Intermediaries have commenced due diligence, with audit and valuation processes progressing smoothly. The company pledges to continue fulfilling disclosure obligations in accordance with relevant laws and regulations.

However, the transaction remains subject to multiple conditions, including further board approval, general meeting approvals, and regulatory approvals from the Shanghai Stock Exchange, China Securities Regulatory Commission, and other competent authorities. Investors are cautioned that there is uncertainty regarding the timing and ultimate obtainment of these approvals and registrations, as detailed in the risk factors outlined in the proposal disclosed on August 16, 2025.