Hengdian DMEGC expands fund, parent plans share sale

Hengdian Group DMEGC Magnetics (DMEGC Magnetics) announced a significant expansion of its industrial investment fund, increasing the total fundraising scale to 500 million yuan, an increase of 300 million yuan. Hengdian Capital will contribute 13 million yuan and DMEGC Magnetics will contribute 287 million yuan to the increase. Post-increase, Hengdian Capital's total contribution to the fund will be 15 million yuan, and DMEGC Magnetics' contribution will be 485 million yuan. The fund will primarily invest in high-growth companies across new materials and new energy sectors.

Concurrently, Hengdian Group Holdings, the controlling shareholder of DMEGC Magnetics, plans to reduce its stake in the company. Hengdian Group Holdings, currently holding 823 million shares (50.59% of total share capital), intends to sell up to 16.26 million shares (1% of total share capital) within three months following 15 trading days from the announcement date. The sales will be conducted via centralized bidding or block trading, driven by the shareholder's operational needs.

The share reduction is not expected to alter DMEGC Magnetics’ control or significantly impact its governance and operations. Both announcements were made on December 25, 2025.