HYBRID KINETIC (01188): Heng Wan is currently undergoing a capital reduction.

HYBRID KINETIC (01188) announced that, following the memorandum of understanding, in order to establish long-term strategic cooperation and achieve mutually beneficial commercial interests, the Group entered into a capital increase and capital reduction agreement (the Agreement) on October 9, 2026 with Heng Wan and Hengsheng New Energy (Anhui) Co., Ltd. (Hengsheng). Pursuant to the Agreement, the Company shall inject an agreed amount of RMB2.0952 million in cash into Heng Wan. The capital injection amount will be funded from the Group's internal resources. Upon completion of the capital increase, the Company and Hengsheng will hold approximately 52.381% and approximately 47.619% equity interests in Heng Wan, respectively, and Hengsheng's interest will be diluted from 100% to approximately 47.619%. Pursuant to the Agreement, the registered capital of Heng Wan will be reduced from RMB210 million to RMB4 million. On November 2, 2026, Heng Wan became a subsidiary of the Company. As at the date of this announcement, Heng Wan is undergoing a capital reduction. The Group is actively developing its business in the physical industry sector of energy storage and power batteries. The proposed cooperation with Heng Wan will enable the Group to accelerate its layout in the energy storage and power battery physical industry segment by leveraging Heng Wan's stable production capacity, solid new energy technology capabilities and compliant operating foundation. In addition, the proposed partnership will enable each contracting party to benefit from the other's competitive advantages and create new mutually beneficial business opportunities in the new energy industry chain.