Xinghua shares refinancing approved by the Securities Regulatory Commission

(Xi'an, China) - On June 27th, Sinochem received the "Approval of Shaanxi Sinochem Chemical Company Limited to issue shares to specific objects" from the China Securities Regulatory Commission, forwarded by the Shenzhen Stock Exchange. After the completion of the capital operation of Sinochem, the ethanol business of the Group will be effectively integrated and enter into the listed company system, which also marks the birth of the world's largest coal-based ethanol producer in Yanchang Petroleum.



In recent years, in accordance with the Group's plan to increase the combination of production and finance and improve the securitization rate of assets, Xinghua has been actively implementing capital operation with the support of the Group's world's first syngas technology demonstration project and the promotion and application of scientific and technological achievements, giving full play to the advantages of the listed company platform and Xinghua's own technical and management advantages.



In 2020, Xinghua launched a refinancing to raise funds through a non-public offering of shares for the acquisition of the control of 100,000 tons of ethanol projects, etc. In early 2023, in accordance with the requirements of the China Securities Regulatory Commission and the need to solve the potential competition in the ethanol business, Xinghua completed the acquisition of the control of 500,000 tons of ethanol projects completed by Yanchang Petroleum through a major asset reorganization. In mid-May, Sinochem's application for non-public offering of shares passed the review of the Shenzhen Stock Exchange, and in early June, the Shenzhen Stock Exchange submitted registration documents to the CSRC and recently received the approval of the CSRC for registration.



Subsequently, Sinochem will work with the sponsor underwriting institution to determine the issue base date in due course and launch the subscription of the stock issue at an opportune time to ensure that the funds raised will be earmarked for the fund-raising project after the full amount arrives, to promote the quality and quantity of enterprise development through the combination of production and financing, to fulfill the responsibility and obligation of state-owned enterprises to safeguard national energy security, and to facilitate the transformation of scientific and technological achievements and securitization of state-owned assets.