Linyang Energy subsidiary implements equity incentives, adjusts ownership

Jiangsu Linyang Energy Company Limited announced that its wholly-owned subsidiary, Jiangsu Linyang Zhiming Technology Co., Ltd., will undertake a capital increase to implement an equity incentive plan. This will result in Linyang Zhiming's registered capital increasing from yuan 50,000,000 to yuan 62,893,082. The capital increase will involve contributions from Nanjing Chenyang Investment Partnership, Nanjing Zhanyang Investment Partnership, Nanjing Yuyang Investment Partnership, and Mr. Lu Yonghua, totaling yuan 43,573,800. These entities will contribute to Linyang Zhiming's registered capital and capital reserve at a price of yuan 4.2511 per unit of registered capital.

Following the capital increase, Jiangsu Linyang Energy’s stake in Linyang Zhiming will decrease from 100% to 79.5%, transforming it from a wholly-owned subsidiary to a controlling subsidiary. The company has decided to waive its preferential subscription rights for this capital increase. The transaction constitutes a related-party transaction as some of the investors are senior management, directors, or the actual controller of Jiangsu Linyang Energy. The company's board of directors, including independent directors, approved the transaction on December 26, 2025, with associated parties abstaining from voting.