Yankuang Energy Group Company Limited (stock code: 01171) announced progress regarding the proposed spin-off of its controlled subsidiary, Kasong Science and Technology Co., Ltd. The Hong Kong Stock Exchange approved Yankuang Energy’s application under Practice Note 15 of the Listing Rules. Concurrently, Kasong Science and Technology received a letter of approval from National Equities Exchange and Quotations Co., Ltd. for public transfer and quotation.

The announcement outlines that Yankuang Energy obtained a waiver from strict compliance with paragraph 3(f) of Practice Note 15 of the Hong Kong Listing Rules, which typically requires offering assured entitlements to existing shareholders in a spin-off. Based on prevailing regulatory restrictions in the People’s Republic of China, most shareholders are not currently qualified to directly invest in securities on the NEEQ, making assured entitlements impracticable.

Upon completion of the spin-off, Kasong Science and Technology will remain a controlled subsidiary, with its financial results consolidated into Yankuang Energy’s statements. The company states that this arrangement facilitates realizing value from its existing investment and provides Kasong Science and Technology with an independent financing platform while maintaining consolidated financial results. The company will continue to follow applicable disclosure regulations for any further updates on this spin-off.