XINTE ENERGY (01799.HK): Subsidiary to Acquire 39.05% of Fengsheng Power for RMB500m

NewTimeSpace News: On 20 October 2026 (after trading hours), Xinte Energy Co., Ltd. (stock code: 01799) announced that its non-wholly-owned subsidiary Xinjiang New Energy, IB Financial and Fengsheng Power entered into an equity transfer contract: IB Financial agreed to transfer its 39.05% equity interest in Zhengxiangbaiqi Fengsheng Power Co., Ltd. (corresponding to RMB469,651,993 of registered capital) to Xinjiang New Energy for a transfer price of RMB500,000,000, and Xinjiang New Energy agreed to accept the transfer; upon completion, Xinjiang New Energy will hold 100% of Fengsheng Power, which remains a non-wholly-owned subsidiary of the Company.

The transfer price was determined through arm's-length negotiation, with reference to Fengsheng Power's operating conditions, IB Financial's original investment of RMB500,000,000 and the pricing formula under the shareholders' agreement: transfer price = IB Financial's capital contribution + (cumulative expected dividends up to the transfer date − cumulative actual dividends received) ÷ 0.75, with a negative difference treated as zero. As at the announcement date, IB Financial had received dividends of RMB32,876,712.33 in line with expected dividends.

The transfer price must be remitted in full to IB Financial's designated bank account after signing, with completion occurring on the date of payment; IB Financial must issue a payment receipt within 10 business days, and the parties must complete the change registration with the State Administration for Market Regulation within 30 days after completion. From the date of full payment, all shareholder rights and obligations attached to the target equity transfer to Xinjiang New Energy, and the capital increase agreement terminates.

Fengsheng Power was established on 21 January 2015 and is principally engaged in wind resource development and operation; its audited 2025 revenue was RMB334.3291 million with net profit after tax of RMB102.5558 million, and its total assets and net assets at 31 December 2025 were approximately RMB2,751.6686 million and RMB1,354.1187 million. As the highest applicable percentage ratio exceeds 5% but is below 25%, the transaction constitutes a discloseable transaction subject to the announcement and reporting requirements but exempt from shareholders' approval; the Company said the transaction aims to revitalise existing assets, optimise Fengsheng Power's shareholding structure and improve decision-making efficiency.