Yihuatong: Transfer of 15% Equity in Huafeng Fuel for 0 Yuan

On October 13, Beijing Yihuatong Technology Co., Ltd. issued an announcement, announcing the signing of the "Equity Transfer Agreement" with Toyota Motor Corporation to transfer its subscribed 15% equity in Huafeng Fuel at a consideration of 0 yuan. Following the completion of this transaction, Yihuatong's stake in Huafeng Fuel decreased from 50% to 35%, marking a significant adjustment by this Chinese fuel cell enterprise in its joint venture strategy and capital allocation, reflecting new approaches in industrial synergy and resource allocation among hydrogen energy enterprises.

Key Transaction Terms:

• Transfer Details: Yihuatong transferred to Toyota Motor the 15% equity corresponding to a subscribed but not yet paid-in capital increase of 9.5 billion yen (approximately 44.8068 million yuan), with a transaction consideration of 0 yuan, resulting in Huafeng Fuel transitioning from a joint venture to an associate enterprise.
• Changes in Equity Structure: Post-transaction, Yihuatong's shareholding ratio decreased to 35%, while Toyota Motor's shareholding ratio increased accordingly, leading to a change in control of the joint venture company.
• Buyback Mechanism: The agreement established a unique two-way buyback right, granting Yihuatong the option to repurchase the aforementioned equity under the same conditions by the end of 2025; if the buyback is not exercised, Yihuatong may also require Toyota Motor to acquire all or part of its equity in Huafeng Fuel.

Strategic Adjustment and Risk Control:
The core of this transaction lies inYihuatong achieving asset optimization through equity structure adjustment. By transferring the equity for which capital has not yet been paid in, Yihuatong effectively reduced short-term funding pressure while maintaining its position as a significant shareholder, demonstrating the company's precise control over investments in the hydrogen energy industry. The unique buyback clause design retained flexibility for future strategic adjustments, allowing the company to either repurchase equity to strengthen control when funds are sufficient or further reduce holdings and exit when necessary, showcasing mature capital operation thinking.