Shuifa Energas(SH:603318) Zheng Quan Zhi Xing·2025-06-24 17:48Core Viewpoint - The company plans to issue shares to a specific entity, Water Development Group Co., Ltd., which is its controlling shareholder, constituting a related party transaction [1][2]. Group 1: Related Party Transaction Overview - The issuance of shares will be conducted through cash subscription by Water Development Group, which is the controlling shareholder of the company [1][2]. - The board of directors has approved the issuance, with independent directors expressing their agreement [1][2]. - The transaction requires approval from the shareholders' meeting and regulatory bodies, including the Shanghai Stock Exchange and the China Securities Regulatory Commission [1][2]. Group 2: Related Party Information - Water Development Group is a state-owned enterprise established in 2009, primarily engaged in the management and investment of water resources in Shandong Province [2]. - As of the announcement date, Water Development Group has total assets of approximately 161.32 billion yuan and total liabilities of about 125.40 billion yuan [3]. Group 3: Transaction Details - The subscription amount by Water Development Group will not exceed 500 million yuan, with a maximum subscription of approximately 94.52 million shares, representing no more than 30% of the company's total share capital prior to the issuance [7][8]. - The issuance price is set at 5.29 yuan per share, which is 80% of the average trading price over the previous 20 trading days [6][7]. - The shares will be subject to a lock-up period of 36 months post-issuance [8]. Group 4: Purpose and Impact of the Transaction - The participation of Water Development Group in the share issuance reflects its positive outlook on the company's future and strong support for its development [16]. - The issuance is expected to reduce the company's debt-to-asset ratio, thereby lowering financial risks and enhancing its financial structure and market competitiveness [16].