CHINA RISUN GP (01907) plans to inject RMB 507 million in capital into Xiangfu New Energy to support its rapid capacity expansion.

CHINA RISUN GP (01907) announced that on September 23, 2026, Risun Group, Tianjin Binhai Energy & Development, Risun Holdings, and Xiangfu New Energy entered into a capital increase agreement, pursuant to which Risun Group agreed to inject RMB 507 million in cash into Xiangfu New Energy, of which RMB 217 million will be credited to Xiangfu New Energy's registered capital, and the premium of RMB 290 million will be credited to its capital reserve. Immediately prior to this capital increase, Xiangfu New Energy was held approximately 63.3% and 36.7% by Tianjin Binhai Energy & Development and Risun Holdings, respectively. Upon completion of this capital increase, the registered share capital of Xiangfu New Energy will increase from RMB 948 million to RMB 1.165 billion, and the Group's aggregate equity interest in Xiangfu New Energy (through Risun Group and Tianjin Binhai Energy & Development) will increase to approximately 70.14%. The Group has long been optimistic about the new energy industry. Xiangfu New Energy is constructing a 200,000-tonne integrated anode material project and a supporting source-grid-load-storage green power project. In the future, once the 200,000-tonne integrated anode material project and the 100,000-tonne anode material project are completed and put into production, they will collectively form a finished product process capacity of 280,000 tonnes per year. In addition, Xiangfu New Energy has a medium- to long-term plan in Shangdu County for no less than 500,000 tonnes of integrated capacity, together with an application for a supporting 600MW green power direct connection project, and is also planning to deploy related capacity in other regions close to customers. This capital increase can supplement Xiangfu New Energy's capital, help it rapidly expand capacity, expand market share as soon as possible, reduce unit production costs, achieve economies of scale, and enhance overall competitiveness. The Directors consider that this capital increase is conducted on normal commercial terms in the ordinary and usual course of business of the Group, and is fair and reasonable and in the overall interests of the Company and its shareholders.