China Shenhua progresses with asset acquisition and fundraising

China Shenhua Energy Company Limited is proceeding with its plan to issue A-shares and pay cash to acquire assets from its controlling shareholder, China Energy Investment Corporation Limited. These assets include coal, pithead coal power, coal-to-oil, coal-to-gas, and coal chemical operations. The company also intends to raise supporting funds through an A-share issuance. This transaction constitutes a related party transaction but is not expected to result in a change of the company's actual control.

The company's A-share stock was suspended from trading on August 4, 2025, and resumed on August 18, 2025, following the disclosure of the transaction's preliminary plan. On August 15, 2025, China Shenhua's sixth board of directors and seventh board of supervisors approved the proposals related to this transaction.

As of November 8, 2025, intermediary agencies are conducting due diligence, and audit and appraisal work for the transaction is progressing as planned. The transaction remains subject to multiple conditions, including further board and shareholder approvals, exchange review, and registration with the China Securities Regulatory Commission, the timing of which remains uncertain.