Sinopec Shanghai Petrochemical Company Limited (00338) announced that its wholly-owned subsidiary Inner Mongolia New Jinshan Carbon Fiber Co., Ltd. (“Carbon Fiber Company”) has introduced new investors, including its controlling shareholder China Petroleum & Chemical Corporation (“Sinopec Corp.”, 00386), as part of a RMB600.00 million capital increase. Under the deal, Sinopec Corp. has subscribed RMB300.00 million, resulting in a 25% shareholding in Carbon Fiber Company. The remaining RMB300.00 million was taken up by three other strategic investors.

Following this transaction, Sinopec Shanghai Petrochemical’s stake in Carbon Fiber Company is reduced from 100% to 50%, constituting a deemed disposal under applicable listing rules. The total registered capital of Carbon Fiber Company now stands at RMB1.20 billion. As Sinopec Corp. holds approximately 51.81% of Sinopec Shanghai Petrochemical, the new subscription is considered a connected transaction under relevant regulatory provisions. The company stated that all reporting and announcement requirements have been met, while independent shareholders’ approval was not required under the Hong Kong Listing Rules.

The new funds raised will support research and development as well as ongoing project launches in the carbon fiber segment. Sinopec Shanghai Petrochemical highlighted that bringing in Sinopec Corp. and other investors would accelerate large-scale production, enhance integration along the industrial chain, and expand high-performance carbon fiber applications in sectors such as new energy and aerospace. The board of Sinopec Shanghai Petrochemical approved the transaction on 29 December 2025, and the capital increase agreement with Sinopec Corp. was signed on 28 February 2026. Carbon Fiber Company remains a subsidiary of Sinopec Shanghai Petrochemical and will continue to be included in the group’s consolidated financial statements.