Yancoal Energy Group proposes Kasong Technology spin-off for NEEQ listing

Yancoal Energy Group plans to spin off Kasong Technology, a 51%-owned indirect subsidiary, for listing on the NEEQ. Kasong Technology, established in April 2005, primarily engages in the research, development, production, and sale of industrial lubricants and greases. The application for listing on the NEEQ was submitted on September 22, 2025. Yancoal Energy Group’s subsidiary, Shandong Energy Group Luxi Mining Co. Ltd., holds 51% of Kasong Technology.

The proposed spin-off aims to broaden Kasong Technology’s financing channels, strengthen its market competitiveness, and expand its business scope within the industrial lubrication sector. This move is expected to enhance Yancoal Energy Group's profitability and overall competitiveness in high-end equipment manufacturing. The company believes the spin-off will increase Kasong Technology’s market exposure and brand image, attracting talent and improving its creditworthiness for loans and financing.

Financially, Kasong Technology reported total assets of RMB355,491.54 thousand and total liabilities of RMB149,184.18 thousand as of June 30, 2025 (unaudited). For the six months ended June 30, 2025, its unaudited operating revenue was RMB153,471.19 thousand, with a net profit of RMB4,355.12 thousand. The spin-off will not involve issuing new shares by Kasong Technology, ensuring Yancoal Energy Group retains its controlling stake and continues to consolidate Kasong Technology's financial results.