YANKUANG ENERGY Plans to Acquire 100% Stake in Shandong Energy Group's High-End Support Company

Deep News11-28

On November 28, 2025, YANKUANG ENERGY announced that its wholly-owned subsidiary, Yankuang Donghua Heavy Industry Co., Ltd. ("Donghua Heavy Industry"), intends to acquire a 100% stake in Shandong Energy Equipment Group High-End Support Manufacturing Co., Ltd. ("High-End Support Company") from Shandong Energy Group Heavy Equipment Manufacturing (Group) Co., Ltd. ("Shandong Energy Equipment").

High-End Support Company was established on December 8, 2022, with its registered address in Tai'an City, Shandong Province, and a registered capital of RMB 300 million. Its business scope includes mining machinery manufacturing, general equipment manufacturing and repair, special equipment repair, sales of special and mechanical equipment, as well as the design, manufacturing, installation, and modification of special equipment.

Impact of the transaction on the listed company: 1. **Avoiding Competition and Advancing Strategic Development**: High-End Support Company and Donghua Heavy Industry operate in similar business areas, creating competitive overlap. Post-transaction, this will effectively resolve competition concerns while accelerating integrated equipment manufacturing deployment. It will also support intelligent coal mine construction and enhance safe, efficient mining operations. 2. **Reducing Related-Party Transactions and Improving Efficiency**: YANKUANG ENERGY is a major client of High-End Support Company. The acquisition will minimize related-party transactions, lower procurement costs, and maximize overall operational efficiency.

The transaction does not involve management changes, employee relocation, or land leasing arrangements.

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