Gelonghui, June 14, 丨 Xinte Energy (01799.HK) announced that on June 14, 2024, the company's subsidiary Silicon-based New Materials signed a capital increase agreement with Tianchi, Xinjiang and the target company. Based on this, Silicon-based New Materials agreed to use its own monetary capital to increase the capital of the target company, Xinjiang Zhunneng Investment Co., Ltd. by RMB 490 million as the registered capital of the target company.

After the capital increase is completed, the new silicon-based materials will hold 49% of the target company's shares. The target company's financial statements will not be integrated into the group's comprehensive financial statements, and the target company will be subject to financial accounting and confirmation of investment income in accordance with the Equity Law.

After the capital increase is completed, the new silicon-based materials will become the second largest shareholder of the target company. Under the condition of compliance with power scheduling and compliance with relevant power trading policies, the new silicon-based materials will seek to prioritize the use of electricity produced by the project for polysilicon production for polysilicon production, which is conducive to the stability of the power supply for polysilicon production, optimizes production costs, and enhances the overall competitiveness of the company's polysilicon products. At the same time, according to the project's feasibility study report, the project has good economic benefits. After the capital increase is completed, the new silicon-based materials will hold 49% of the target company's shares. The group will conduct financial accounting on the target company and confirm investment income in accordance with the equity law, which will help create a new profit growth point for the group.