Shanghai Electric (02727) announced that on December 30, 2025, its board of directors approved a proposal concerning the transfer of its 47.4% equity stake in Shanghai Electric Guoxuan New Energy Technology Co., Ltd. and the waiver of its preemptive right to purchase an additional 3.6% stake in the same company. The company has agreed to publicly list for transfer its 47.4% stake in Shanghai Electric Guoxuan New Energy Technology Co., Ltd. (Electric Guoxuan) through the Shanghai United Assets and Equity Exchange. The listing price is set at 1 RMB, based on a pre-assessment of Electric Guoxuan's total shareholder equity value, with the final price subject to the state-owned assets filing. The company will also waive its preemptive right to purchase the 3.6% stake in Electric Guoxuan being transferred by Shanghai Haohao New Energy Technology Partnership. Shanghai Electric's energy storage business is targeted at the domestic power storage market, where the mainstream battery cells are lithium iron phosphate (LFP) batteries with capacities of 280Ah or higher. In contrast, Electric Guoxuan's primary business is lithium battery energy storage based on 100Ah capacity LFP batteries. Electric Guoxuan's proprietary products are more suitable for backup power and overseas residential storage markets and cannot meet the requirements of the power storage market, indicating a misalignment with Shanghai Electric's strategic direction. Furthermore, since its establishment, Electric Guoxuan's operating condition has consistently failed to improve significantly, resulting in sustained operational losses. Consequently, the company intends to divest its 47.4% stake in Electric Guoxuan. Haohao New Energy is an employee持股 platform established by Electric Guoxuan's company side. It plans to transfer its 3.6% stake in Electric Guoxuan via agreement or other exit methods concurrently with Shanghai Electric's sale of its 47.4% stake, and Shanghai Electric will waive its preemptive right to purchase this 3.6% equity.