Hengyuan Coal boosts related-party transactions for 2025 operational demands

Anhui Hengyuan Coal Industry and Electricity Power Co., Ltd. announced an increase in its estimated quota for 2025 ordinary related-party transactions, approved by its board of directors on December 17, 2025. The company will raise its estimated purchase of goods from related party Anhui Changjiang Energy Development Co., Ltd. from a previous estimate of RMB 35,000,000 to RMB 50,000,000, representing an increase of RMB 15,000,000. For January to November 2025, the actual amount incurred for these transactions was RMB 32,374,000.

This adjustment is driven by the company's inability to meet customer demand with its self-produced coking coal. The sales subsidiary will procure external market coking coal from Anhui Changjiang Energy Development Co., Ltd. to fulfill customer orders, thereby enhancing the company's coking coal market share and customer relationships. The increase in coking coal prices and rising demand from downstream customers also contributed to the higher estimated full-year actual transaction amount compared to the initial estimate.

Anhui Changjiang Energy Development Co., Ltd. specializes in coal wholesale and is a wholly-owned subsidiary of Anhui Wankang Guomao Co., Ltd., which is fully owned by Hengyuan Coal’s controlling shareholder, Anhui Wanbei Coal and Electricity Group Co., Ltd., establishing it as a related party. The transactions are based on market prices, ensuring fairness and transparency, and are not expected to impact the company's independence or continuous operations.