Yihuatong Terminated Acquisition of Xuyang Hydrogen Energy, Half-Year Restructuring Failed Due to Plan Disagreements

On September 6, Beijing SinoHytec Co., Ltd. announced its decision to terminate the major asset restructuring plan involving the acquisition of 100% equity in Dingzhou Xuyang Hydrogen Energy Co., Ltd. through share issuance and the raising of supporting funds. The transaction, initiated in February 2025, lasted six months before being terminated after prudent deliberation due to the failure of relevant parties to reach consensus on the final plan.

The announcement revealed that SinoHytec had planned to purchase 100% equity in Dingzhou Xuyang Hydrogen Energy Co., Ltd. (referred to as "Xuyang Hydrogen Energy") through share issuance while raising supporting funds. The transaction was expected to constitute a major asset restructuring as defined by the "Administrative Measures for Major Asset Restructuring of Publicly Listed Firms," qualify as a connected transaction, but not constitute backdoor listing. The termination resulted from SinoHytec and relevant parties actively advancing various aspects of the transaction while strictly fulfilling information disclosure obligations in accordance with regulations. As the involved parties failed to reach agreement on the final plan, SinoHytec decided to terminate the transaction after friendly consultations, thorough research, and comprehensive evaluation with all relevant parties, based on prudent considerations to safeguard the long-term interests of the publicly listed firm and its investors.

SinoHytec stated that the termination decision followed careful deliberation by the company and extensive communication and amicable negotiations with the counterparties. The company's current production and operations remain normal, with no material adverse impact expected on its business activities or financial condition. The termination does not involve any detriment to the interests of the company or its minority shareholders.