Korla Pear's subsidiary completes major asset restructuring

Xinjiang Korla Pear (SSE:600506) announced the completion of a major asset restructuring involving its wholly-owned subsidiary, Tongyi Petrochemical Co., Ltd. The restructuring involved a capital increase for Tongyi Petrochemical through a public listing on the Beijing Equity Exchange. A total of CNY 400 million was invested by Kerqiao Leading Venture Capital Partnership, resulting in them holding a 21.91% stake in Tongyi Petrochemical. The funds will be used for research and development and production of new energy liquid-cooled oil and special lubricating oil, as well as to supplement working capital. Hualong Securities Co., Ltd., acting as the independent financial advisor, has issued a verification opinion confirming the successful implementation of the transaction and compliance with relevant regulations. The change of registration has been completed on June 5, 2025.