China Shenhua Energy (01088) plans to purchase assets from the State Energy Group and Western Energy Group.

China Shenhua Energy (01088) announced that on August 15, 2025, the company entered into an Asset Purchase Agreement with the State Energy Group and its wholly-owned subsidiaries Western Energy. The company conditionally agreed to acquire 100% equity of Guoyuan Power, 100% equity of Xinjiang Energy, 100% equity of Chemical Company, 100% equity of Wuhai Energy, 100% equity of Pingzhuang Coal Industry, 41% equity of Shenyan Coal, 49% equity of Jinshen Energy, 100% equity of Baotou Mining, 100% equity of Shipping Company, 100% equity of Coal Marketing Company, 100% equity of E-commerce Company, and 100% equity of Port Company held by the State Energy Group through the issuance of consideration shares and payment of cash; and to acquire 100% equity of Inner Mongolia Jian Investment held by Western Energy by paying cash. The company plans to issue new A shares to no more than 35 specific investors who meet the conditions. The total amount of funds raised for the subscription shall not exceed 100% of the transaction price, and the number of new A shares to be issued shall not exceed 30% of the total share capital of the company after the issuance of consideration shares. All subscribers will subscribe to the newly issued A shares at the same price in cash. The number of proposed A shares to be issued will be finally determined based on the results of the inquiry after review by the Shanghai Stock Exchange and approval by the China Securities Regulatory Commission. After the completion of this transaction, the company's asset size and business strength will significantly increase, and key financial data such as total assets, net assets, and operating income will increase significantly, thereby enhancing the company's asset quality and profitability. Except for Jinshen Energy, the other target companies will become subsidiaries of the company and be included in the group's consolidated financial statements; Jinshen Energy, as the company holds a 49% stake, will not be included in the consolidated financial statements and its performance will be accounted for using the equity method.