According to the announcement from CM-ENERGY (00206) on the Zhitong Finance APP, on December 30, 2024, the company entered into a subscription agreement with the subscriber China Merchants Innovation Technology (Hong Kong), where the company conditionally agrees to issue and allocate shares, and the subscriber conditionally agrees to subscribe for 1.622 billion shares at the subscription price of HKD 0.20 per share, amounting to cash of HKD 0.324 billion.

The newly issued subscription shares will account for approximately 50% of the issued share capital of the company as of the announcement date; and about 33.33% of the issued share capital after the company expands its issued share capital by issuing and allocating subscription shares (assuming there are no other changes in the company's share capital from the announcement date to the completion date). The subscription price represents a premium of 25.00% compared to the closing price of HKD 0.160 per share on December 30, 2024.

As of the announcement date, the subscriber is a wholly-owned subsidiary of CM Group, a major shareholder of the company, thus making it a related party of the company. As of the announcement date, CM Group, through Prime Force Investment Corporation (a wholly-owned subsidiary of CM Group), holds 1.53 billion shares, representing approximately 47.18% of the company's issued share capital. CM Group is a large state-owned Conglomerates, with its business mainly focused on core industries such as transportation, finance, urban and park integrated development and operation, as well as Technology and innovation-related businesses.

The net proceeds from the share subscription are intended to be used for the development of hydrogen, machinery, and electrical-related businesses, including advancing the company's green energy equipment development and manufacturing, electrical drive and control, among other aspects, and will enhance the company's manufacturing capabilities, creating competitive products. The net proceeds will also be used to replenish the company's general working capital.

Upon completion, CM Group will have equity in over 50% of the company's issued share capital. The share subscription will enable China Merchants Group to support the company's long-term Business development more flexibly and efficiently, thus aiding the company in achieving its long-term development strategy. The increase in CM Group's holdings in the company also reflects its confidence in the company's sustained long-term growth.

The share subscription will also integrate the Technology resources within China Merchants Group. This move will allow the company to further focus on the collaborative development of green energy Technology and assist the company in becoming a successful high-end green energy equipment manufacturing platform. This will be a key aspect of the company's goal to become an industry-leading Technology innovation-type green energy and equipment service provider in the medium to long term.