Xinhuanet's controlling stake shifts to Xinhua Investment Holdings

Xinhua News Agency Investment Holdings Company Limited (XINHUA INVESTMENT) is set to become the controlling shareholder of Xinhuanet Co., Ltd. (Xinhuanet) through a cashless transfer of state-owned shares from Xinhua News Agency. Following Xinhuanet's 2024 equity distribution plan, which included a stock dividend and capital reserve transfer, its total share capital increased to 674,738,168 shares. The number of Xinhuanet shares held by Xinhua News Agency to be transferred to XINHUA INVESTMENT has been adjusted to 344,083,662 shares, maintaining a 51% ownership stake.

Upon completion, XINHUA INVESTMENT will directly hold 414,413,493 Xinhuanet shares, representing 61.42% of the total share capital. Including shares held by its concerted party, China Economic Information Service Co., Ltd. (CEIS), the combined stake will be 419,835,533 shares, or 62.22%. This internal restructuring, approved by various authorities, will not alter Xinhuanet's ultimate actual controller, which remains Xinhua News Agency. The transaction is designed to optimize state-owned capital allocation and improve management efficiency.

In a related move, Xinhuanet will increase the capital of its wholly-owned subsidiary, Xinhuanet Ventures, by 200,000,000 yuan, raising its registered capital from 100,000,000 yuan to 300,000,000 yuan. This aims to bolster its investment business and market competitiveness. The share transfer remains subject to confirmation from the Shanghai Stock Exchange and completion of registration formalities.