New Hope Liuhe's controlling shareholder unwinds exchangeable bond collateral

New Hope Liuhe Co., Ltd. announced that its controlling shareholder, New Hope Group Co., Ltd., has completed the cancellation of collateral and trust registration for 40,900,000 New Hope Liuhe shares. This action, representing 0.91% of the total share capital, was processed by the China Securities Depository and Clearing Corporation Limited Shenzhen Branch on December 15, 2025. The shares were transferred out of the "New Hope-Debang Securities-23 Hope E1 Collateral and Trust Property Special Account."

This move aligns with the maintenance of collateral ratio and de-collateralization mechanisms stipulated in the prospectus for New Hope Group's 2023 non-public issuance of exchangeable corporate bonds (tranche 1) to professional investors. Debang Securities Co., Ltd. serves as the trustee for the shares under a trust registration period concurrent with the exchangeable bonds' tenor. Debang Securities is authorized to exercise voting rights as per New Hope Group's wishes.

Following this cancellation, New Hope Group directly holds 474,766,175 shares (10.54% of total share capital), excluding shares held in collateral and trust accounts. Through its subsidiary, Southern Hope Industry Co., Ltd., it indirectly holds 1,328,957,185 shares (29.52%). The "New Hope-Debang Securities-23 Hope E1 Collateral and Trust Property Special Account" now holds 655,113,517 shares, representing 14.55%. The company confirmed that this change will not alter the controlling shareholder or actual controller. Investors are advised to monitor the issuance progress and be aware of investment risks.