Shanghai DZH progresses major asset restructuring plan

Shanghai DZH announced further progress in its major asset restructuring. The plan involves Xiangcai Co., Ltd. merging with DZH through a share swap and a concurrent private placement to raise supporting funds. The company's board of directors and supervisory board approved the preliminary plan and its summary in a meeting on March 28, 2025, with details published on the Shanghai Stock Exchange website the following day.

Subsequent progress announcements were made on April 28, May 28, June 28, July 26, and August 23, 2025. As of the current announcement date, the audit and due diligence work related to the transaction has been largely completed. The company, in collaboration with its intermediaries, is finalizing remaining tasks before submitting proposals for board approval.

Shanghai DZH also issued a risk warning, noting that the transaction's complexity, ongoing negotiations of agreement terms, industry regulatory policies, and restructuring costs could impact its progress. The final implementation of the transaction is contingent on approvals from both companies' boards and shareholders, as well as relevant regulatory authorities. Investors are advised to refer to the detailed preliminary plan disclosed on March 29, 2025, for a comprehensive understanding of potential risks.