Hengyi Petrochemical's controlling shareholder raises stake to 55%

Hengyi Petrochemical's controlling shareholder, Zhejiang Hengyi Group Co., Ltd., and Hangzhou Hengyi Investment Co., Ltd., announced a substantial increase in their shareholding, reaching an aggregate of 55% of the company’s total share capital. The combined entities acquired 198,130,962.4 shares on December 15, 2025, through block trades on the Shenzhen Stock Exchange, with a total investment of 1,399,434,100 yuan. This follows a previous commitment to increase holdings by 1.5 bn yuan to 2.5 bn yuan at prices not exceeding 10 yuan per share.

Concurrently, the company announced the complete sale and termination of its Fourth Phase Employee Stock Ownership Plan and the employee trust plan held by the controlling shareholder and its affiliated enterprises. The Fourth Phase Employee Stock Ownership Plan sold all 113,754,600 shares, representing 3.16% of the total share capital, to Zhejiang Hengyi Group Co., Ltd. on December 15, 2025. Similarly, the employee trust plan sold its 47,841,104 shares, representing 1.33% of the total share capital, to Hangzhou Hengyi Investment Co., Ltd. on the same date.

These disposals facilitate the controlling shareholder and its acting in concert to increase their holdings by acquiring these shares, with Zhejiang Hengyi Group Co., Ltd. directly holding 46.55% and Hangzhou Hengyi Investment Co., Ltd. holding 8.44%, bringing their combined ownership to 55%. The previous employee plans were extended multiple times before their early termination due to the complete sale of shares.