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Guanghui Co., Ltd. plans to raise 2.5 billion yuan through a private stock issuance to fund the construction of a project with an annual production capacity of 1.2 million tons of methanol and 800,000 tons of dimethyl ether (coal-based); the total investment for this project is 6.455 billion yuan. The main products of this project are 550 million cubic meters of liquid methane (LNG), 1.2 million tons of methanol or 800,000 tons of dimethyl ether, along with 210,000 tons of by-products such as naphtha, tar, crude phenol, middle distillates, sulfuric acid, and liquid ammonia. Guanghui Co., Ltd. will increase its capital investment in the new energy company, thereby making that company a holding subsidiary of the parent company, with the new energy company being responsible for carrying out the projects. The registered capital of the new energy company is 1.1 billion yuan, with the company itself and its controlling shareholder, Guanghui Group, holding 9.09% and 88.18% of that capital respectively. It is said that Guanghui Co., Ltd.’s plan for this private issuance of RMB ordinary shares involves issuing shares to no more than ten specific parties, including its controlling shareholder Guanghui Group. The upper limit for the number of shares to be issued is 300 million shares (including 300 million), while the lower limit is 100 million shares (including 100 million). Guanghui Group intends to subscribe for at least 10% of the total number of shares issued in this transaction ； The issue price shall not be lower than 11.47 yuan per share ； All investors subscribed in cash. Of the 2.5 billion yuan to be raised through this private offering, 600 million yuan will be used to replace the company’s registered capital in the new energy company, at a rate of 1 yuan of registered capital for each 1 yuan actually invested ； The remaining 1.9 billion yuan will be used to increase the capital of the new energy company, with the price per unit of capital contribution determined by dividing the assessed net asset value of the new energy company by its registered capital. If the amount of funds raised this time is less than 2.5 billion yuan, the shortfall in capital increase will be covered by the company through its own financing. Following this capital increase, the company will hold at least 67% of the shares in the new energy company. The board of directors of Guanghui Shares has agreed to, in accordance with the aforementioned principles for capital increase, first sign a Letter of Intent on Capital Increase with Guanghui Group and Xingda Mining. Once the relevant audits and assessments of the new energy company are completed, the company’s board of directors will formally sign capital increase agreements with Guanghui Group and Xingda Mining to determine their respective contribution ratios following the implementation of this private offering and the completion of the capital increase. Methane can serve as a supplementary gas source for LNG, thereby addressing the issue of the company being constrained by insufficient gas supply and unable to fully realize its potential for development. Once this project is completed and put into operation, Guanghui Co., Ltd. will have its own raw material base in addition to the gas supply provided by CNPC’s Tuhua oil field, thereby extending the LNG industry chain upstream. This will help the company increase its production capacity for LNG products and boost its profitability. Guanghui Co., Ltd. also stated that methanol and dimethyl ether, as clean fuels, have good development prospects and help to enrich the company’s portfolio of clean energy products. The company has established a development strategy for clean energy suppliers, and the projects funded through this fundraising are in line with the company’s strategic objectives.