Shanghai Electric Power to consolidate Xinjiang Shenyuan, raise CNY 4.2 bn

Shanghai Electric Power Company Limited (SEP) announced its intention to consolidate Xinjiang Shenyuan Energy Company Limited into State Power Investment Corporation Xinjiang Energy Chemical Co., Ltd. through a concerted action agreement. Xinjiang Energy Chemical, a subsidiary of SEP's controlling shareholder, will now include Xinjiang Shenyuan on its financial statements. This move aims to leverage local advantages for resource allocation and optimized legal structure, following the write-off of the Hami North 900MW PV + 100MW CSP project due to market changes.

Concurrently, SEP plans to raise up to CNY 4.2 billion through perpetual trust financing from Guorui Trust Co., Ltd., a subsidiary of its controlling shareholder. This financing aims to optimize SEP's asset-liability structure and fund domestic thermal power and new energy projects. Both the Xinjiang Shenyuan consolidation and the perpetual trust financing were approved by SEP's Ninth Board of Directors' Sixth Meeting, with interested related directors abstaining. These transactions will be presented for shareholder approval.

Furthermore, SEP proposes to reappoint Zhonghui Certified Public Accountants (Special General Partnership) as its auditor for 2025. The company also announced a change in its board, with Ms. Tian Yuhuan nominated as a new director, succeeding Mr. Tang Jun. These matters require shareholder approval at the Fourth Interim Shareholders' Meeting on December 16, 2025.