Xiangcai Shares progresses with Dazhihui merger, audit work nearly complete

Xiangcai Co., Ltd. (Xiangcai Shares) is progressing with its major asset restructuring, which involves a share-for-share absorption merger of Shanghai Dazhihui Co., Ltd. (Dazhihui). This transaction includes Xiangcai Shares issuing A-shares to all Dazhihui shareholders and raising supporting funds.

The restructuring plan was initially approved by Xiangcai Shares' board of directors and supervisory board on March 28, 2025. Subsequent progress announcements were made monthly from April to August 2025. As of the latest disclosure, audit and due diligence work for the transaction are largely complete.

The company plans to reconvene its board of directors to deliberate on the transaction once further work with intermediaries is finalized. Investors are cautioned that the complex nature of the transaction, ongoing negotiations of agreement terms, and potential impacts from regulatory policies and restructuring costs introduce uncertainty. Final approval from both companies' shareholders and regulatory bodies is still pending.