Hong Kong – Xinte Energy Co., Ltd. (“Xinte Energy”) announced that its 91.26%-held subsidiary TBEA Xinjiang Sunoasis Co., Ltd. (“Sunoasis”) has signed an Equity Transfer Contract with ICBC Financial Asset Investment Co. Ltd. (“ICBC Financial”) and Zhengxiangbaiqi Fengsheng Power Generation Co., Ltd. (“Fengsheng Power Generation”) on 20 October 2026, after market close.
Under the agreement, Sunoasis will purchase ICBC Financial’s 39.05% equity interest in Fengsheng Power Generation—equivalent to RMB469.65 million of registered capital—for a cash consideration of RMB500.00 million. The price was set through arm’s-length negotiations and mirrors ICBC Financial’s original RMB500.00 million investment made in June 2025, adjusted in line with a dividend-based pricing formula defined in the parties’ prior Shareholders’ Agreement. ICBC Financial has so far received RMB32.88 million in dividends from Fengsheng Power Generation.
Payment of the RMB500.00 million consideration will be remitted in full upon contract signing, which also constitutes the transaction’s completion date. All shareholder rights attached to the transferred equity, including voting and dividend rights, will pass to Sunoasis upon payment. Registration of the new ownership structure with the State Administration for Market Regulation is to be finalised within 30 days of completion. The 2025 Capital Injection Agreement between the parties will be terminated.
Following the transfer, Sunoasis will own 100% of Fengsheng Power Generation. Given Xinte Energy’s 91.26% stake in Sunoasis, Fengsheng will continue to be accounted for as a non-wholly-owned subsidiary of Xinte Energy, but with full operating control residing within the group.
Financial snapshot of Fengsheng Power Generation: • FY 2024 revenue: RMB327.87 million; net profit after tax: RMB69.83 million. • FY 2025 revenue: RMB334.33 million; net profit after tax: RMB102.56 million. • Total assets as at 31 Dec 2025: RMB2.75 billion; net assets: RMB1.35 billion.
Regulatory classification: The transaction’s highest applicable percentage ratio under HKEX Listing Rule 14.06 exceeds 5% but is below 25%, making it a discloseable transaction. It therefore requires public announcement and reporting but is exempt from shareholder approval.
Strategic rationale: Xinte Energy states the deal will streamline Fengsheng Power Generation’s shareholding structure, centralise management control, and is expected to enhance operational decision-making efficiency and asset returns, aligning with the group’s broader strategy to revitalise existing assets and improve quality and efficiency.
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