Xinjiang Korla pear: Control shift and asset restructuring

Xinjiang Korla Pear (SSE: 600506) is undergoing significant changes, including a shift in its actual control and a major asset restructuring involving its subsidiary, Tongyi Petrochemical. The actual controller will change from the Ministry of Finance to Central Huijin Investment Ltd. as the Ministry transfers its shares in China Cinda to Central Huijin. This transfer doesn't change Cinda's holding in Xinjiang Korla Pear. Simultaneously, Tongyi Petrochemical is pursuing a major asset restructuring through a public listing to raise no less than 400 million yuan by diluting its equity. This restructuring will involve a subsidiary to invest in new energy liquid cooled oils and special lubrication products. The subsidiary has secured land for its expansion in Zhejiang and needs government approval to be finalized. The transaction is subject to regulatory approvals and shareholder approvals.