Yunnan Energy Holdings: Only equity investment in Innate Computing Power; the capital increase is expected not to exceed 1.4 billion yuan

Yunnan Energy Holdings Issues Risk Warning Announcement: The company is currently planning to invest in Xiantian Computing, a subsidiary of Henan Investment Group, and to acquire Zhengzhou Heying Data Co., Ltd. as the acquisition target. Xiantian Computing has signed a Share Transfer Agreement with the relevant transaction counterparty with conditions for effectiveness, but it still needs to complete approval procedures from the state-owned asset supervision and administration department (if required) and antitrust review procedures. There is some uncertainty regarding whether and when the conditions for effectiveness and settlement will be met. The company will only hold a minority stake in Xiantian Computing through this investment, with an estimated capital increase of no more than 1.4 billion yuan and an estimated shareholding ratio of no more than 49%, and will not consolidate Xiantian Computing’s financial statements. The audit and valuation work related to this capital increase have not yet been completed, and the amount of the capital increase, the shareholding ratio, and other details have not been determined. The relevant agreements for the capital increase have not yet been signed. Additionally, the target company faces operational risks in the data center industry, risks of concentration of large clients, and risks related to effective post-merger integration.