SPIC Dongfang New Energy continues REITs-like issuance for non-debt financing

SPIC Dongfang New Energy Corp. announced on September 13, 2025, its plan to continue issuing REITs-like products using assets from Shijiazhuang Liangcun Thermoelectric Co., Ltd. The initial issuance, which raised 1.77 bn yuan, is set to mature in November 2025. The new issuance is projected to be no more than 1.74 bn yuan, with the final amount subject to regulatory approval.

The board of directors approved the proposal on September 12, 2025, with seven votes in favor and none against or abstaining. This transaction will not require shareholder approval and does not constitute a related party transaction or a major asset restructuring. The company aims to preserve its existing equity financing channels and avoid increasing its asset-liability ratio through debt financing.

The underlying asset, Dongfang Xincheng (Hebei) Energy Partnership, reported total assets and owner's equity of 2.354 bn yuan as of April 30, 2025, with no liabilities. The partnership generated a net profit of 18.2858 m yuan for the first four months of 2025. The company will retain control of Liangcun Thermoelectric, ensuring it remains within the consolidated financial statements, and the issuance is not expected to negatively impact shareholders.