Meijin Energy halts hydrogen project, reallocates funds to working capital

Shanxi Meijin Energy Co., Ltd. has announced the termination of its "Hydrogen Fuel Cell Power System and Commercial Vehicle Parts Production Project (Phase I - Stage I)" and will permanently supplement working capital with the remaining funds. This decision, approved by the company's board, aims to mitigate investment risks and improve capital utilization due to changing market conditions and slower-than-expected progress in hydrogen fuel cell vehicle adoption. As of September 30, 2025, the project had invested 7,343.33 yuan, with 17,917.83 yuan remaining unspent.

The unspent funds, including investment income and bank interest, represent 5.04% of the total net proceeds from the company's convertible bond issuance of 3,556,637,735.85 yuan. The board also approved calling a 2025 Fourth Interim Shareholders' Meeting and the first 2025 convertible bondholders' meeting for November 25, 2025, to seek approval for this decision.

The company's strategy shifts from direct production to a "platform-based, integrated" asset-light operating model, leveraging existing facilities and attracting partners for R&D and industrial cooperation in hydrogen energy transportation and storage. This move is expected to reduce capital expenditure, diversify technical risks, and align with Meijin Energy's current operational needs.