Yuan Xing Energy: Controlling shareholder re-pledges significant portion of shares

Inner Mongolia Yuan Xing Energy announced that its controlling shareholder, Inner Mongolia Boyuan Holding Group Co., Ltd. (Boyuan Group), has released and re-pledged 64.5m shares. These shares represent 5.75% of Boyuan Group's total holdings and 1.73% of the company's total share capital. The re-pledge, made to Urumqi Bank Co., Ltd. Ordos Branch, serves as collateral for Boyuan Group's own financing needs. The pledge period runs from November 29, 2023, to September 29, 2025.

As of the disclosure date, Boyuan Group and its acting in concert party, Beijing Zhongji Hongli Asset Management Co., Ltd., have pledged 97.20% of their total company shares, amounting to 1,122,491,995 shares. This represents 30.18% of Inner Mongolia Yuan Xing Energy's total share capital. The company highlighted that Boyuan Group's pledged shares account for over 80% of its total holdings, cautioning investors about the associated risks.

Boyuan Group's high proportion of pledged shares is attributed to its own capital requirements, financing needs, and providing collateral for company financing. The funds are primarily used for daily operations and external investments. The company stated that there is currently no risk of liquidation, and should such a risk arise, Boyuan Group and its acting in concert party would implement measures like early repayment, pledge extensions, or additional collateral to mitigate it.