China Xuyang Group (01907) plans to increase capital of Xiangfu New Energy by 507 million yuan to help it rapidly expand production capacity

According to Zhitong Finance App, China's Xuyang Group (01907) announced that on September 23, 2026, Xuyang Group signed a capital increase agreement with Binhai Energy, Xuyang Holdings and Xiangfu New Energy. According to this, Xuyang Group agreed to increase the capital of Xiangfu New Energy by RMB 507 million in cash, of which RMB 217 million will be included in the registered capital of Xiangfu New Energy, and the surplus of RMB 290 million will be included in its capital reserve fund.

Immediately prior to this capital increase, Binhai Energy and Xuyang Holdings held approximately 63.3% and 36.7% of the shares respectively. After the settlement of this capital increase, the registered share capital of Xiangfu New Energy will increase from RMB 948 million to RMB 1,165 million, while the total shareholding ratio of Xiangfu New Energy by the Group (through Xuyang Group and Binhai Energy) will increase to about 70.14%.

The Group has long been optimistic about the new energy industry. Xiangfu New Energy is building a 200,000 ton anode material integration project and a supporting source grid load storage green power project. In the future, when the 200,000 ton anode material integration project and the 100,000 ton anode material project are completed and put into operation, it will comprehensively form a finished product process production capacity of 280,000 tons/year. In addition, Xiangfu New Energy plans to have an integrated production capacity of not less than 500,000 tons in Shangdu County, and is supporting the application for a 600MW green power direct connection project. At the same time, it is also planning to lay out related production capacity in other regions close to customers.

This capital increase can supplement capital for Xiangfu New Energy, help it rapidly expand production capacity, expand its market share as soon as possible, reduce unit production costs, achieve scale effects, and enhance overall competitiveness.

The directors believe that this capital increase was carried out in the general and daily business process of the Group in accordance with general commercial terms, which is fair and reasonable and conforms to the overall interests of the Company and shareholders.