China Shenhua Energy Company Limited (“China Shenhua”) announced further developments regarding its proposal to issue A shares and pay cash to acquire assets from its controlling shareholder, China Energy Investment Corporation Limited, as well as raise supporting funds through an additional A-share issuance. According to the announcement, the transaction involves coal, pithead coal power, coal-to-liquid, coal-to-gas, and coal chemicals businesses. The company classifies the deal as a related transaction and confirms it does not constitute a major asset restructuring or involve any change in the company’s actual controller.

China Shenhua’s A shares were suspended from trading on 4 August 2025 to facilitate the planning of the transaction, followed by a board meeting on 15 August 2025 that approved detailed proposals for the share issuance, payment of cash, and fundraising plan. The shares resumed trading on 18 August 2025. Since disclosing the proposal, the company and relevant intermediaries have been actively conducting due diligence, audit, and valuation work. These processes remain on schedule.

The implementation of the transaction is subject to multiple approvals, including another review by the board of directors, consent at general meetings, and regulatory clearance from the Shanghai Stock Exchange and the China Securities Regulatory Commission. China Shenhua emphasized the uncertainties regarding the final approvals and their timings. Investors were encouraged to consult the detailed risk factors in the disclosed proposal and remain aware of potential investment risks.