Sanhua Intelligent Controls addresses stock volatility after bond conversion

Zhejiang Sanhua Intelligent Controls Co., Ltd. announced an abnormal stock price fluctuation after its shares experienced a cumulative deviation of over 20% in closing price over three consecutive trading days (September 16, 17, and 18, 2025). The company stated that its production and operations remain normal with no major changes in the operating environment. Furthermore, the company, its controlling shareholder, and actual controller have no undisclosed significant matters or those in the planning stage, nor did they engage in any stock trading during the abnormal fluctuation period.

Coinciding with this, a related announcement detailed the completion of the convertible bond exchange by Zhejiang Sanhua Green Energy Industrial Group Co., Ltd. ("Sanhua Green Energy"), the company's shareholder. Sanhua Green Energy's "23 Sanhua EB" convertible bonds, with an issuance size of RMB 2.05 bn, were fully converted into shares between February 19, 2024, and September 17, 2025. This conversion involved 78,372,765 shares, representing 1.86% of the company's current total share capital.

Following the conversion, Sanhua Green Energy’s total holdings in Zhejiang Sanhua Intelligent Controls decreased from 742,747,954 shares (19.90%) to 664,375,189 shares (15.78%). The company confirmed that this transaction does not alter the actual control of the company and will not impact its corporate governance structure or ongoing operations.