Tianneng Power (00819) subsidiary plans to acquire 50.10% of Anhui Xinna's shares for 150.3 million yuan

According to Zhitong Finance App News, Tianneng Power (00819) announced that on October 30, 2026 (after the transaction period), Tianneng New Materials (an indirect non-wholly-owned subsidiary of the company), Tianchang Holdings and Anhui Xinna entered into an equity transfer agreement. According to this, Tianneng New Materials has agreed to buy and Tianchang Holdings has agreed to sell the target shares (equivalent to 50.10% of the registered capital of Anhui Xinna). The cost is about RMB 1503 million, which will be paid by Tianchang Holdings for the additional registered capital of Tianneng New Materials.

After these transactions are completed, (1) Tianneng New Materials will hold 50.10% of Anhui XinNa's shares, and Anhui Xinna will become a subsidiary of Tianneng New Materials, and its assets and liabilities will be comprehensively included in the Group's financial statements; and (2) Tianchang Holdings will hold about 33.35% of Tianneng New Materials's shares, increasing its equity by about 8.35 percentage points.

On the date of the equity transfer agreement, Anhui Xinna was 90% owned by Tianchang Holdings and 10% owned by Hexian Fenghe.

Anhui XinNa focuses on the research and development of cathode materials for new energy batteries, and has accumulated technical expertise and R&D experience in cathode materials for sodium-ion batteries 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 low cost. As batteries installed in earlier years reach their useful life, it is expected that demand for recycling waste lithium iron phosphate batteries and for the restoration and reuse of their cathode materials will increase.

Tianneng New Materials is mainly engaged in recycling and comprehensive utilization of waste lithium-ion batteries. It is expected that these transactions will supplement its existing business with Anhui XinNa's cathode material technology, broaden its technical capabilities in the battery recycling value chain, and enhance its processing capacity. It is expected that the synergy effects in R&D, resource recycling and commercial applications will strengthen the Group's competitive position in the field of new energy battery recycling and support its long-term sustainable development.

The directors (including independent non-executive directors) believe that although such transactions are not carried out in the Group's daily and general business processes, the terms of the share transfer agreement and the transactions to be carried out under it are fair and reasonable, and conform to the overall interests of the Company and the Company's shareholders.