Putailai unit to forego priority rights in subsidiary deal

Shanghai Putailai New Energy Technology will forgo its right of first refusal regarding the sale of 71% of Sichuan Yindile Materials Technology Group to Ribo Fashion Group, a related entity controlled by the same ultimate owner, Liang Feng. Valued at approximately 1.42 billion yuan, the transaction will involve payment through the issuance of shares and cash. In a March 2025 announcement, Shanghai Putailai specified its reason for this decision: Shanghai Putailai intends to focus more on its core activities. Following the transaction, the Yindile stake would transfer, while Yindile would remain a Shanghai Putailai associate. Also announced in March 2025, subject to shareholder approval, is a proposed stock option plan for key personnel, targeting 262 personnel, and granting rights to purchase some 32 million shares at 15.43 yuan per share.