Changhong Jiahua to be privatized and delisted from Hong Kong exchange

Sichuan Changhong Electric announced that its controlled subsidiary, Changhong Jiahua Holdings Company Limited, will be privatized through a scheme of arrangement by Hongtu Investment Co., a wholly-owned subsidiary of Changhong Holdings Group. This will result in Changhong Jiahua's delisting from the Hong Kong Stock Exchange. The scheme, approved by Changhong's board on September 22, 2025, involves Hongtu Investment acquiring all outstanding ordinary shares of Changhong Jiahua not controlled by Sichuan Changhong. The plan includes the cancellation of scheme shares at HK$1.223 per share, with new shares issued to Hongtu Investment.

Sichuan Changhong Electric, through its wholly-owned subsidiaries Hong Kong Changhong Trading Co. and Anjian Holdings Co., indirectly holds 874,650,000 ordinary shares and 1,115,868,000 convertible preference shares of Changhong Jiahua, representing 60.13% of its total ordinary shares and 100% of its convertible preference shares. Post-privatization, Sichuan Changhong's equity stake in Changhong Jiahua will remain unchanged. The board decided that Anjian Holdings would not convert its convertible preference shares to ordinary shares, and would waive the commitment to maintain Changhong Jiahua's listing status.

The privatization is intended to reduce listing costs for Changhong Jiahua and allow it to explore new opportunities by leveraging resources from Changhong Holdings Group, as its share price has remained below net asset value, hindering capital operations. The transaction's completion is subject to various conditions and may be subject to change, suspension, or termination if these conditions are not met.