Mesnac subsidiary forms joint venture for Cambodian biomass power plant

Mesnac’s subsidiary, Qingdao Mesnac Energy Technology Co., Ltd., has signed a joint venture agreement to establish Huazhong (Kratie) Energy Thermal Power Co., Ltd. in Cambodia. This new entity will invest in a biomass power plant project, with a total investment of $23.87m and a registered capital of $13.87m. Mesnac Energy will contribute $7.0737m from its own and self-raised funds, securing a 51% stake. The project aims to meet the power demands of the industrial park and utilize local resources, aligning with Mesnac's sustainable development strategy.

The joint venture, approved by Mesnac's board of directors and its Strategy and Sustainable Development Committee, involves partners FIREMAX (CAMBODIA) TIRES CO., LTD. (20% stake), SINO FOUNDATION ENGINEERING (CAMBODIA) CO., LTD. (17.46% stake), and UBE DEVELOPMENT Co., Ltd. (11.54% stake, with a land contribution of 100 acres). The power plant is designed with two 75T/H high-temperature and high-pressure boilers, targeting a maximum power generation of 20MW and daily generation of 15MW, with an expected commissioning by June 30, 2026.

In a separate development, Mesnac announced an adjustment to the exercise price of its 2022 Stock Option and Restricted Stock Incentive Plan. Following a 2025 interim dividend distribution of yuan 0.50 per 10 shares, the exercise price of stock options has been adjusted from yuan 5.924 per share to yuan 5.874 per share, effective September 3, 2025. This adjustment was approved by the board on June 13, 2025.