Shanxi Xishan Coal approves $9.68bn related party transactions for 2026

Shanxi Xishan Coal & Electricity Power's independent directors have approved key related party transactions for 2026, totaling RMB 9,680,080,000 for everyday dealings. This encompasses RMB 7,553,670,000 in projected purchases and RMB 2,126,410,000 in projected sales. The independent directors confirmed these transactions are fair, reasonable, and will not harm the company's independence or the interests of its shareholders.

Additionally, the board of directors and independent directors approved two entrusted loan agreements. The first involves a RMB 350,000,000 entrusted loan to Shanxi Xishan Huatong Cement Co., Ltd. for three years at a 3.0% interest rate, with a RMB 35,000 service fee. The second is a RMB 400,000,000 entrusted loan to Wuxiang Xishan Power Generation Co., Ltd., also for three years at a 3.0% interest rate, with a RMB 40,000 service fee. Both loans aim to ensure the normal operation and working capital turnover of the respective subsidiaries, with related parties recusing themselves from voting.

These approvals follow a detailed review of 2025 related party transactions, which saw a 44.25% reduction compared to initial projections, totaling RMB 6,276,140,000 for January–November 2025. This reduction was primarily due to lower coal prices and concentrated fourth-quarter settlements. The board has also called for a third extraordinary general meeting in 2025 to seek shareholder approval for the 2026 daily related party transactions.