Sichuan Energy Development to acquire Chuantou Energy, becoming controlling shareholder

Huatai United Securities Co., Ltd. has issued a continuous supervision opinion regarding the acquisition of Sichuan Chuantou Energy Co., Ltd. by Sichuan Energy Development Group Co., Ltd., exempting the latter from a tender offer. This acquisition, involving the new establishment of Sichuan Energy Development Group Co., Ltd. through the merger of Sichuan Investment Group Co., Ltd. and Sichuan Energy Investment Group Co., Ltd., will result in Sichuan Energy Development directly holding 2,401,149,487 shares (49.26%) and indirectly holding 39,661,038 shares (0.81%) via Chuantou Emel Metal Alloy (Group) Co., Ltd., totaling 50.07% of Chuantou Energy.

As of August 15, 2025, the registration of 2,401,149,487 shares held directly by Sichuan Investment Group Co., Ltd. had not been completed with China Securities Depository and Clearing Corporation Limited. However, the financial advisor believes these procedures do not pose substantial obstacles and are ongoing. Sichuan Chuantou Energy has consistently disclosed updates regarding the strategic reorganization, with the most recent filing on July 29, 2025, detailing the progress of the controlling shareholder’s equity change.

The acquisition will see Sichuan Energy Development Group Co., Ltd. become the controlling shareholder, succeeding Sichuan Investment Group Co., Ltd. The actual controller remains the Sichuan Provincial State-owned Assets Supervision and Administration Commission. According to the acquisition report, Sichuan Energy Development Group and its concert parties do not currently have plans to alter Chuantou Energy's primary business, make significant adjustments to its assets, change its board or senior management, modify its articles of association, or adjust employee hiring or dividend policies within the next 12 months.