Shaoneng Group updates share issuance, state-owned entities to become controllers

Guangdong Shaoneng Group (the "Company") announced updates to its reply to the Shenzhen Stock Exchange's audit inquiry letter and other application documents for its 2025 non-public issuance of A-shares. The Company, along with its intermediaries, addressed the issues raised and updated the prospectus with financial data from its 2025 third-quarter report.

The issuance involves a maximum of 101,010,101 A-shares, or 30% of the pre-issuance total share capital, to Shaoguan Jincai Investment Group Co., Ltd. (Jincai Investment) at RMB 3.96 per share. This aims to raise up to RMB 400,000,000 for working capital. Post-issuance, Jincai Investment and Shaoguan Industrial Assets Management Co., Ltd. will become the Company's controlling shareholders, with the Shaoguan State-owned Assets Supervision and Administration Commission becoming the ultimate actual controller. This shift follows an "acting in concert agreement" and has received approval from the Shaoguan State-owned Assets Supervision and Administration Commission.

Jincai Investment's capital for this subscription will come from its own funds (not less than 30%) and bank loans (not exceeding 70%). Separately, Shenzhen Zhaowei Hengfa Energy Co., Ltd., a 5% shareholder, completed a share reduction of 31,444,050 shares between November 10, 2025, and November 25, 2025. The Company's total share capital decreased to 1,064,343,324 shares after canceling 16,208,345 repurchased shares on November 7, 2025.