HAIWEI ELEC (09609): Sunshine Hydrogen has completed a new round of financing, diluting its shares to 0.2769% post-financing.

HAIWEI ELEC (09609) issued an announcement regarding the latest developments in the group's investment in Sunshine Hydrogen Energy Technology Co., Ltd. (Sunshine Hydrogen). On April 17, 2026, the company entered into a share purchase agreement with Sunshine Hydrogen, its then shareholders, and two independent investors, whereby the company agreed to acquire 1,154,000 newly issued shares of Sunshine Hydrogen for a total consideration of RMB 20 million, representing approximately 0.2825% of its enlarged share capital (Investment Matter). The consideration for the Investment Matter was determined after fair negotiations among the relevant parties, taking into account, among other factors, Sunshine Hydrogen's business development and prospects, the outlook of the industry it operates in, its financial status, as well as the valuations related to several rounds of financing and the companys participation in this round of financing. The Investment Matter was completed on April 28, 2026, in accordance with the terms of the relevant share purchase agreement. Sunshine Hydrogen is a manufacturer specializing in hydrogen energy equipment, established in China in 2021. It is a subsidiary of Sungrow Power Supply Co., Ltd. (Sungrow Power Supply), a leading player in the global new energy industry, with shares listed on the Shenzhen Stock Exchange (Stock Code: 300274). Sunshine Hydrogen focuses on water electrolysis hydrogen production technology. Its main products include alkaline electrolyzers, PEM electrolyzers, PWM hydrogen generation power supplies, gas-liquid separation equipment, hydrogen purification equipment, and intelligent hydrogen management systems. As a manufacturer of hydrogen energy equipment, Sunshine Hydrogen's business is positioned in the downstream application sectors served by the groups capacitor film products. Therefore, the Investment Matter is expected to promote closer cooperation between the group and Sunshine Hydrogen along the industrial value chain, support the expansion of the groups capacitor film sales, and strengthen the long-term strategic relationship between the two parties. As a subsidiary of Sungrow Power Supply, Sunshine Hydrogen benefits from Sungrow Power Supplys research and development capabilities and industry resources, which are expected to support its business's ongoing development and create further opportunities for collaboration with the group. Considering the long-term development prospects of the green hydrogen industry, the Investment Matter also provides the group with opportunities to benefit from the potential value appreciation brought about by Sunshine Hydrogen's future business development. After considering the above factors, the Board believes that the terms of the Investment Matter are fair and reasonable, having been established through fair negotiations and according to normal commercial terms, and are in the overall interests of the company and its shareholders. On August 10, 2026, Sunshine Hydrogen completed a new round of financing, in which the company did not participate. Following the completion of this financing round, Sunshine Hydrogen's implied post-investment valuation increased by approximately 2.0% to around RMB 7,223 million, while the companys equity stake in Sunshine Hydrogen was slightly diluted to approximately 0.2769%.