China Pingmei Shenma Group Finance Co., Ltd. announced that it has signed a subscription agreement for the private placement of 2,000,000,000 common shares at a price of CNY 1.0978 per share for gross proceeds of CNY 2,195,600,000 on May 17, 2021. The round will include participation from existing investors Shenma Industrial Co., Ltd. (SHSE:600810) for 930,000,000 shares for CNY 1,020,954,000, Pingdingshan Tianan Coal. Mining Co., Ltd. (SHSE:601666) for 700,000,000 shares for CNY 768,460,000 and China Pingmei Shenma Group for 370,000,000 shares for CNY 406,186,000.

Post completion of the transaction, the registered capital of the company will increase from CNY 3,000,000,000 to CNY 5,000,000,000. Post-closing the stake of Shenma Industrial Co., Ltd. (SHSE:600810) will increase from 14% to 27%, Pingdingshan Tianan Coal. Mining Co., Ltd. (SHSE:601666) will retain its 35% stake and China Pingmei Shenma Group, will decrease from 51% to 38% stake in the company.

The transaction has been approved by the board of directors of Shenma Industrial Co., Ltd. (SHSE:600810) in the 22nd meeting of the 10th Board of Directors.