China Shenhua Energy (01088) will no longer acquire 100% of the shares of the e-commerce company held by State Energy Group.

China Shenhua Energy (01088) announced that on December 19, 2025, the company signed a Supplementary Asset Purchase Agreement with National Energy Group and Western Energy. Under this agreement, (i) the scope of assets under this transaction has been revised to no longer include the 100% equity of the e-commerce company held by National Energy Group, while the remaining target assets remain unchanged; and (ii) certain terms of this transaction (including transaction consideration and payment arrangements) have been further revised and supplemented. On August 15, 2025, the company signed an Asset Purchase Agreement with National Energy Group and its wholly-owned subsidiary Western Energy. Under this agreement, the company conditionally agreed to (i) acquire 100% equity of Guoyuan Power, Xinjiang Energy, Chemical Company, Wuhai Energy, Pingzhuang Coal, Shenyan Coal at 41%, Jinshen Energy at 49%, Baotou Mining, Shipping Company, Coal Sales Company, e-commerce company, and Port Company held by National Energy Group through issuing consideration shares and payment in cash; and (ii) acquire 100% equity of Inner Mongolia Jiandou held by Western Energy through payment in cash. The company plans to issue new A shares to up to 35 qualified specific investors. The total amount of funds to be raised is not more than RMB 20 billion, which will be used entirely to pay for the cash consideration of this transaction, intermediary fees, and related taxes. The number of new A shares to be issued shall not exceed 30% of the total share capital of the company after the completion of the issuance of consideration shares. All subscribers will subscribe for the new A shares to be issued under the proposed issuance of A shares at the same price in cash. The amount of proposed A shares to be issued will be finally determined based on the inquiry results after being reviewed by the Shanghai Stock Exchange and registered by the China Securities Regulatory Commission. The proposed issuance of A shares is subject to the implementation of this transaction, and this transaction is not conditional on the completion of the proposed issuance of A shares.