Hengyi Petrochemical's controlling shareholder plans major share increase

Hengyi Petrochemical has announced that its controlling shareholder, Zhejiang Hengyi Group Co., Ltd., and its affiliate, Hangzhou Hengyi Investment Co., Ltd., plan to increase their shareholding in the company. The combined entities intend to purchase shares totaling between RMB 1.5 billion and RMB 2.5 billion, at a price not exceeding RMB 10 per share. This share increase will occur over a six-month period, from December 2, 2025, to June 1, 2026.

The purpose of this initiative is to reflect confidence in the company's sustained development and long-term investment value, as well as to enhance investor confidence. Funding for the share increase will come from both self-owned capital and special loans. China CITIC Bank Hangzhou Xiaoshan Branch and China Construction Bank Ningbo Branch have committed to providing up to RMB 1 billion each in special loans for share increases to Hengyi Group and Hengyi Investment, respectively.

As of the announcement, Hengyi Group directly holds 43.16% of Hengyi Petrochemical's shares, while Hengyi Investment holds 7.12%, bringing the total combined stake to 50.28%. The controlling shareholder and its affiliate have pledged not to reduce their shareholding during the implementation period.