ENERGY INTINV(00353) plans to acquire 100% equity of Xinli Investment with HKD 300 million to strengthen its control over Shundong Port.

ENERGY INTINV (00353) announced that on April 8, 2025, the company's indirect wholly-owned subsidiary Mission Achiever Limited intends to acquire 100% of the issued share capital of Xinli Venture Capital Limited from Huang Yuhang and Shandong Yican for a consideration of HK$300 million on a debt-free basis. As of the date of this announcement, the Company indirectly controls approximately 55.17% of the ordinary shares of Shundong Port, making Shundong Port an indirect non-wholly-owned subsidiary of the Company. Upon completion, the target company will become an indirect wholly-owned subsidiary of the Company, and the Company will further control approximately 29.83% of the ordinary shares of Shundong Port through the target company and its Hong Kong special purpose company, collectively controlling 85% of Shundong Port's ordinary shares. Shundong Port is the Company's principal operating subsidiary, holding two sea usage rights covering a total area of approximately 31.59 hectares in Dongying Port, Shandong Province, China for land reclamation and port construction, with a concession period of 50 years. Given the continuous improvement in Shundong Port's financial performance and the favorable future growth prospects under the mentioned market conditions, the Company believes that the acquisition provides a valuable opportunity to increase its ordinary shareholding in Shundong Port. This enables the Company to retain more surplus profits distributed by Shundong Port to shareholders and have the right to receive more dividends when Shundong Port distributes dividends on ordinary shares. In addition, any resolutions related to increasing Shundong Port's registered capital or amending its articles of association must be approved by a majority vote of at least two-thirds of ordinary shareholders holding ordinary shares. The acquisition will increase the Company's holding of ordinary shares to over two-thirds, enhancing its control over Shundong Port and simplifying decision-making processes related to equity financing or amendments to Shundong Port's articles of association, facilitating the timely implementation of strategic plans aligned with the group's business objectives.