Hangzhou Steam Turbine merger with Hailianxun technology approved by SZSE

Hangzhou Steam Turbine Power Group Co., Ltd. (HTC) announced on September 12, 2025, that its share-exchange absorption merger with Hangzhou Hailianxun Technology Co., Ltd. (Hirisun) has been approved by the Shenzhen Stock Exchange’s Mergers and Acquisitions Review Committee. The transaction, involving Hirisun issuing A-shares to all HTC shareholders, was found to meet restructuring conditions and information disclosure requirements. However, it still requires registration approval from the China Securities Regulatory Commission, with uncertainty regarding its timing.

The merger is a significant step in state-owned enterprise reform, aiming to enhance HTC's financing capabilities and address historical B-share market issues. HTC's board confirmed the independent financial advisor report, which concluded the valuation was reasonable and fair, aligning with market practices. The merger is expected to improve the combined entity's asset quality, financial condition, and sustainable operational capacity.

Post-merger, the combined entity will focus on industrial steam turbine machinery and electricity information systems. Hangzhou Capital, the controlling shareholder of Hirisun, has committed to injecting up to 15 bn yuan into Hirisun if its stock price falls below 9.56 yuan/share within 15 trading days post-merger. The transaction, including the share exchange ratio and related protection mechanisms for dissenting shareholders, complies with legal and regulatory requirements.