Beijing HaiXin Energy Technology Co., Ltd.
(hereinafter referred to as the "Company") convened the 37th meeting of the 6th Board of Directors on August 7, 2026. With a vote of 9 in favor, 0 against, and 0 abstentions, the board approved the "Proposal on the Integration of the Company's Bioenergy Business, Proposed Establishment of a Wholly-Owned Subsidiary, and Structural Adjustment." This proposal had been reviewed and approved by the Strategic Committee of the 6th Board of Directors for 2026 at its first meeting prior to its submission to the Board of Directors. The details are hereby announced as follows:
I. Overview of the Transaction
To seize the development opportunities in China's biodiesel industry, facilitate the introduction of strategic partners, promote synergistic development of the upstream and downstream of the industrial chain, and carry out pilot applications of biodiesel in China, the Company plans to integrate and adjust its core business segment, the bioenergy business.
The Company plans to establish a wholly-owned subsidiary, Beijing HaiXin Bioenergy Technology Co., Ltd. (tentative name, hereinafter referred to as "HaiXin Bioenergy"), with a registered capital of RMB 500 million. The Company will transfer its equity in bioenergy production and sales companies, namely 84.6154% of Shandong Sanju Bioenergy Co., Ltd. (hereinafter referred to as "Shandong Sanju") and 100% of HaiXin Energy International Limited (hereinafter referred to as "HaiXin International"), to HaiXin Bioenergy through a non-public agreement transfer at the net asset value confirmed by the audited report as of the base date, with the net asset value serving as the transaction price. The business plan for HaiXin Bioenergy after its establishment is to focus on SAF product demanders as a key strategic direction in the downstream, establish a strategic alliance with raw material suppliers in the upstream to ensure raw material supply; pilot the promotion and application of hydrotreated vegetable oil (HVO) biodiesel, produce HVO biodiesel products suitable for the Beijing-Tianjin-Hebei region, promote the resource utilization of waste edible oil to participate in the carbon trading market; explore new raw materials for biodiesel, and reserve bioenergy technologies.
Upon completion of this integration, HaiXin Bioenergy will directly hold 84.6154% equity in Shandong Sanju and 100% equity in HaiXin International.
[Chart: Equity structure before and after integration]
According to the "Shenzhen Stock Exchange Stock Listing Rules" and the "Company Articles of Association," this outward investment matter falls within the scope of the Board of Directors' approval authority and does not require shareholder approval.
This transaction does not constitute a related-party transaction, nor does it constitute a major asset restructuring as defined by the "Administrative Measures for Major Asset Restructuring of Listed Companies," and does not require approval from relevant authorities.
II. Basic Information of the Transaction Target
(I) Shandong Sanju