Extension proposal for private placement fails shareholder vote; Xinjiang International Industry terminates 662 million yuan placement

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Xinjiang International Industry announced on the evening of October 9 that the company held the 19th extraordinary meeting of the 9th board of directors that day, and approved the proposal to terminate the issuance of shares to specific investors and withdraw the application documents. According to the resolution of the company's fourth extraordinary shareholders' meeting in 2025, the validity period of the shareholders' meeting resolution for this private placement runs until October 9, 2026. On September 28, 2026, the company held the fifth extraordinary shareholders' meeting in 2026 to consider a proposal to extend the validity period, but the proposal was not approved. The company therefore decided to terminate the issuance and withdraw the application documents. According to the placement plan, the private placement was intended to raise no more than 662 million yuan, with an initial issue price of 4.59 yuan per share, later adjusted to no less than 80 percent of the average trading price over the 20 trading days before the first day of the issuance period. The entire amount was to be subscribed in cash by the controlling shareholder, Xinjiang Rongneng, and after deducting issuance expenses, all proceeds were to be used to supplement working capital. After completion of the issuance, Xinjiang Rongneng's shareholding would have risen from 22.82 percent to 40.63 percent, further consolidating control. Xinjiang International Industry said that terminating the issuance will not have a material adverse impact on the company's normal business operations, and there is no situation that harms the interests of the company and all shareholders. In recent years, the company's performance has been under pressure. Operating revenue for 2024, 2025, and the first half of this year was 2.576 billion yuan, 1.987 billion yuan, and 922 million yuan respectively, down 42.93 percent, 22.90 percent, and 2.48 percent year on year. Net profit attributable to the parent company was a loss of 439 million yuan in 2024, rebounded to 38 million yuan in 2025, and was 15 million yuan in the first half of this year, down 38.39 percent year on year.

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As the controlling shareholder subscribing the entire placement, Xinjiang Rongneng loses the planned injection that would have raised its stake from 22.82% to 40.63%.