Zhongyan Chemical completes capital increase and JV agreement

Cnsig Inner Mongolia Chemical Industry Co., Ltd. (Zhongyan Chemical) announced the completion of the industrial and commercial change registration for its capital increase in Zhongyan (Inner Mongolia) Alkali Industry Co., Ltd. (Zhongyan Alkali Industry). The registered capital of Zhongyan Alkali Industry has increased from RMB19.60 million to RMB8.00 billion. This strategic move, approved by Zhongyan Chemical's board on August 5, 2025, aims to introduce strategic investors.

Following the capital increase, Zhongyan Chemical's equity in Zhongyan Alkali Industry will adjust from 100% to 51%, maintaining control and avoiding changes to consolidated financial statements. New shareholders include Shandong Haihua Co., Ltd. with 29%, Inner Mongolia Mengyan Chemical Industry Investment Co., Ltd. with 10%, and China State-Owned Enterprise Structural Adjustment Fund Phase II Co., Ltd. with 10%.

The transaction, involving the signing of a capital increase and equity cooperation agreement on October 20, 2025, has successfully completed the required industrial and commercial changes and received a new business license.