TIANNENG POWER (00819) subsidiary intends to acquire 50.10% equity interest in Anhui Xinnai for RMB150.3 million

TIANNENG POWER (00819) announces that on October 30, 2026 (after trading hours), Tianneng New Materials (an indirect non-wholly-owned subsidiary of the Company), Tianchang Holdings and Anhui Xinnai entered into an equity transfer agreement, pursuant to which Tianneng New Materials has agreed to acquire and Tianchang Holdings has agreed to sell the target equity (representing 50.10% of the registered capital of Anhui Xinnai) for a consideration of approximately RMB150.3 million, to be paid by Tianchang Holdings subscribing for new registered capital of Tianneng New Materials. Upon completion of these transactions, (1) Tianneng New Materials will hold 50.10% equity interest in Anhui Xinnai, and Anhui Xinnai will become a subsidiary of Tianneng New Materials, with its assets and liabilities consolidated into the Group's financial statements; and (2) Tianchang Holdings will hold approximately 33.35% equity interest in Tianneng New Materials, an increase of approximately 8.35 percentage points. As at the date of the equity transfer agreement, Anhui Xinnai is owned 90% by Tianchang Holdings and 10% by Hexian Fenghe. Anhui Xinnai focuses on the research and development of cathode materials for new energy batteries, and has accumulated technical expertise and R&D experience in sodium-ion battery cathode materials and lithium iron phosphate cathode materials. Lithium iron phosphate batteries are widely used in new energy vehicles and large-scale energy storage due to their advantages such as long cycle life, good thermal stability, high safety and relatively low cost. As batteries installed in earlier years reach the end of their service life, demand for the recycling of spent lithium iron phosphate batteries and the repair and reuse of their cathode materials is expected to increase. Tianneng New Materials is principally engaged in the recycling and comprehensive utilization of spent lithium-ion batteries. The transactions are expected to complement its existing business with Anhui Xinnai's cathode material technology, broaden its technical capabilities across the battery recycling value chain, and enhance its processing capacity. The synergies expected to arise in R&D, resource recovery and commercial application will strengthen the Group's competitive position in the new energy battery recycling sector and support its long-term sustainable development. The Directors (including the independent non-executive Directors) consider that, although the transactions are not conducted in the ordinary and usual course of business of the Group, the terms of the equity transfer agreement and the transactions contemplated thereunder are entered into on normal commercial terms, are fair and reasonable, and are in the overall interests of the Company and its shareholders.