Jiahua Energy: Plans to invest 450 million yuan to participate in the capital increase of Ningbo Xinrun and related transactions.

Jiahua Energy announced that the company authorized its wholly-owned subsidiary Meifu Wharf to publicly bid for participation in the capital increase of Ningbo Xinrun with no more than 450 million yuan; related party Sanjiang Chemical plans to participate with no more than 220 million yuan. This transaction constitutes a related party transaction but not a major asset restructuring, and has been approved at relevant meetings without the need for a shareholder meeting. The target company has been losing money in recent years, and the transaction carries risks such as being acquired by competitors, not passing concentration reviews by regulators, project benefits not meeting expectations, and related contracts not being signed.