Henan Shenhuo boosts subsidiary capital, replaces self-raised funds

Henan Shenhuo Coal & Power has approved a RMB 1 bn cash injection into its wholly-owned subsidiary, Shenhuo New Materials Technology. This capital increase, effective December 1, 2025, will see RMB 446,903,800 enter registered capital and RMB 553,096,200 enter capital reserves, raising Shenhuo New Materials' registered capital to RMB 1,354,565,400 from RMB 907,661,600. The move aims to enhance the subsidiary's financial strength and support its aluminum processing business expansion.

Concurrently, the company confirmed the use of raised funds totaling RMB 640,522,123.07 to replace self-raised capital already invested in its fundraising projects for the period January 1, 2021, to December 30, 2024. This includes RMB 409,452,087.34 for bank acceptance bill payments and RMB 231,070,035.73 for general bank account payments. The replacement was necessitated by IT system upgrades and operational considerations, ensuring efficient use of funds after project completion.

The company's fundraising projects have concluded, with remaining raised funds of RMB 78,561,300, including net interest income of RMB 9,333,800 after deducting handling fees, permanently allocated to supplement working capital as of December 31, 2024. These actions were approved by the board of directors, audit committee, and independent directors on December 1, 2025.