XINTE ENERGY (01799) subsidiary intends to sell 79.92% ownership stake in Xinjiang Fengzhi New Energy Power Generation Partnership, in coordination with REITs issuance to optimize asset structure.

XINTE ENERGY (01799) announced that, in order to support the establishment of the first phase asset-backed special plan, a partnership transfer agreement was signed on December 18, 2025. According to this agreement, the non-wholly-owned subsidiary of the company, MONGOLIA ENERGY, will transfer 79.92% ownership share (corresponding to a subscribed amount of RMB 1.337 billion) of the partnership enterprise (Xinjiang Fengzhi New Energy Power Generation Partnership (Limited Partnership)) to the manager. Subsequently, Kangping New Energy and Mongolia Energy will each enter into transfer agreements with the partnership enterprise, through which they will transfer 99.99% equity of Rongsheng Electric Power and Xinyuan New Energy held by them to the partnership enterprise. The transfer price will be determined based on the valuation of the project company by independent qualified valuers, negotiated on a fair basis. TBEA Co., Ltd., using energy infrastructure held by its subsidiary companies (including the group) as underlying assets, has applied to the Shanghai Stock Exchange for the registration of shelf issuance of asset-backed securities (similar to REITs), with a shelf quota of RMB 3 billion. Multiple products can be issued for subscription and trading by qualified professional investors. As of this announcement date, TBEA Co., Ltd.'s REITs have received no objection letter from the Shanghai Stock Exchange. Xinjiang New Energy intends to use its two new energy power generation projects as the underlying assets for the initial issuance of TBEA Co., Ltd.'s REITs. The total size of the asset-backed securities issuance is estimated to be RMB 1.337 billion. By injecting the proceeds from the issuance of asset-backed securities into the partnership enterprise, the securitization of target assets will be achieved. The partnership enterprise will use the proceeds to acquire target equity, repay bank loans with shareholder loans, and settle daily expenses, taxes, etc. In return, holders of asset-backed securities will enjoy the economic benefits generated by the target assets. The announcement states that the issuance of the first phase asset-backed special plan can optimize the group's asset-liability structure, activate existing assets, improve asset turnover efficiency, diversify financing channels, and further enhance fund utilization efficiency to ensure the healthy, sustainable development of the group.