Zhitong Finance App News, Zhengdao Group (01188) issued an announcement. Following the Memorandum of Understanding, the Group signed a capital increase and reduction agreement with Hengwan and Hengsheng New Energy (Anhui) Co., Ltd. (Hengsheng) on October 9, 2026 (this agreement) in order to establish long-term strategic cooperation and achieve mutual commercial benefits. According to the agreement, the company is required to inject capital into Hengwan in cash in the agreed amount of RMB 2,095,200. The additional funds will be disbursed from the Group's internal resources. After the capital increase is completed, the Company and Hengsheng will hold approximately 52.381% and 47.619% of Hengsheng's shares respectively, while Hengsheng's equity will be diluted from 100% to approximately 47.619%. According to the agreement, Hengwan's registered capital will be reduced from RMB 210 million to RMB 4 million.
On November 2, 2026, Hengwan became a subsidiary of the Company.
As of the date of this announcement, Hengwan is in the process of reducing capital.
The Group is actively developing its business in the physical energy storage and power battery industries. The proposed cooperation with Hengwan will enable the Group to accelerate its layout in the energy storage and power battery physical industry sector with Hengwan's stable production capacity, solid new energy technology strength and compliant operating foundation. Furthermore, the proposed partnership will enable each contracting party to benefit from each other's competitive advantages and open up new mutually beneficial business opportunities in the new energy industry chain.