Huatai United Securities issues supervision opinion on Sichuan Hongda acquisition

Huatai United Securities, acting as financial advisor, has issued its continuous supervision opinion on Shu Dao Investment Group's acquisition of Sichuan Hongda Co., Ltd. The supervision period commenced on July 5, 2025, and will last 12 months post-acquisition. The opinion, dated October 31, 2025, covers the period from July 5, 2025, to September 30, 2025.

Prior to the acquisition, Shu Dao Investment Group held 636,314,805 shares, representing 31.31% of Sichuan Hongda's total share capital. Post-acquisition, Shu Dao Investment Group acquired an additional 609,600,000 A-shares via cash subscription, increasing its total holdings to 1,245,914,805 shares, or 47.17% of the enlarged share capital. Sichuan Hongda's actual controller remains the Sichuan Provincial State-owned Assets Supervision and Administration Commission.

The acquisition involved the issuance of 609,600,000 shares at a price of yuan 4.68 per share, raising gross proceeds of yuan 2,852,928,000.00. After deducting issuance expenses of yuan 18,169,569.81 (excluding VAT), the net proceeds were yuan 2,834,758,430.19. The company's registered capital increased by yuan 609,600,000.00, with capital reserves increasing by yuan 2,225,158,430.19. The securities registration for this issuance was completed on July 8, 2025.