Zhenjiang Shares plans a private placement to raise no more than 1 billion yuan, involving 6 regulatory measures; the controlling shareholder has already cashed out 300 million yuan.

China Economic Net, Beijing, April 1—Zhenjiang Co., Ltd. (603507.SH) disclosed 《Draft Plan for the Issuance of A-Shares to Specific Targets for Fiscal Year 2026》 on the evening of yesterday. The total amount of proceeds to be raised in this private placement to specific targets will not exceed 1B yuan (including this figure). After deducting issuance expenses, all proceeds are intended to be used for the industrialization project of core components for multi-megawatt-class offshore wind turbine generators, the green intelligent casting project for wind power core components with an annual capacity of 200k tons (Phase I), and supplementing working capital.

The type of shares to be issued in this private placement is Renminbi ordinary shares (A shares), with a par value of 1.00 yuan per share. All shares will be issued through a private placement to specific targets.

The issuance targets in this private placement are no more than 35 specific targets (including 35) that meet the conditions stipulated by the China Securities Regulatory Commission. All issuance targets will subscribe for the shares to be issued in this offering in cash at the same price.

The number of shares to be issued in this private placement will not exceed 30% of the company’s total share capital before this issuance; that is, the number will not exceed 55,290,392 shares (including this figure).

The final issue price will be determined, after this issuance is approved by the Shanghai Stock Exchange and registration is agreed to by the China Securities Regulatory Commission, based on the subscription price quotations by the issuance targets, by means of competitive bidding in accordance with the principles of price priority, within the authorization scope granted to the board of directors by the shareholders’ meeting, in consultation with the sponsor (lead underwriter), and pursuant to relevant regulations.

As of the date of the announcement of the draft plan, the targets for this issuance have not yet been determined. Whether there will be circumstances in which the purchase of this private placement shares by related parties constitutes a related-party transaction will be disclosed in the 《Report on the Issuance Circumstances》.

As of the date of the announcement of the draft plan, the company’s controlling shareholder and actual controller are Mr. Hu Zhen and Ms. Bu Chunhua. Mr. Hu Zhen and Ms. Bu Chunhua directly hold 36,977,129 shares of the company, accounting for 20.06% of the company’s total share capital; through Langwei Investment, they indirectly control 9,054,107 shares, accounting for 4.91% of the company’s total share capital. Mr. Hu Zhen and Ms. Bu Chunhua jointly control 46,031,236 shares, accounting for 24.98% of the company’s total share capital.

After this issuance is completed, the proportion of the company shares controlled by Mr. Hu Zhen and Ms. Bu Chunhua will decline somewhat, but they will still remain the controlling shareholder and actual controller of the listed company. This issuance will not result in any change in the company’s controlling rights.

Zhenjiang Co., Ltd. has also disclosed the circumstances of supervision measures taken by securities regulatory authorities and the stock exchange during the most recent five years.

(I) On October 15, 2021, the Shanghai Stock Exchange issued 《Decision on Issuing a Circular of Criticism to Jiangsu Zhenjiang New Energy Equipment Co., Ltd., the controlling shareholder, the actual controller, then-chairman Mr. Hu Zhen, and other related responsible persons》 (〔2021〕130); (II) On November 1, 2021, the Jiangsu Regulatory Bureau of the China Securities Regulatory Commission issued 《Jiangsu Securities Regulatory Bureau Letter on Regulatory Attention to Jiangsu Zhenjiang New Energy Equipment Co., Ltd.》 (Su Zheng Jian Han〔2021〕867); (III) On May 13, 2022, the Shanghai Stock Exchange issued 《Decision on Issuing a Regulatory Warning to Jiangsu Zhenjiang New Energy Equipment Co., Ltd. and Certain Responsible Persons》 (SSE No. 2022-0028); (IV) On June 13, 2022, the Jiangsu Regulatory Bureau of the China Securities Regulatory Commission issued 《Jiangsu Securities Regulatory Bureau Letter on Regulatory Attention to Jiangsu Zhenjiang New Energy Equipment Co., Ltd.》 (Su Zheng Jian Han〔2022〕551); (V) On February 17, 2025, the Jiangsu Regulatory Bureau of the China Securities Regulatory Commission issued 《Jiangsu Securities Regulatory Bureau Letter on Regulatory Attention to Jiangsu Zhenjiang New Energy Equipment Co., Ltd.》 (Su Zheng Jian Han〔2025〕192); (VI) On July 23, 2025, the Shanghai Stock Exchange issued 《Decision on Issuing a Circular of Criticism to Dong Bing, then Supervisor of Jiangsu Zhenjiang New Energy Equipment Co., Ltd.》 (〔2025〕152).

In addition, a public announcement dated December 18, 2025 by Zhenjiang Co., Ltd. shows that as of December 17, 2025, Mr. Hu Zhen had reduced his company shares by 1,843,000 shares through centralized bidding, reduced his company shares by 3,686,026 shares through block transactions, totaling 5,529,026 shares; the share reduction plan for this period has been fully implemented. From December 4, 2025 to December 17, 2025, the share reduction price range for Hu Zhen was 21.42 yuan/share to 24.65 yuan/share, and the total amount reduced was 123.8429 million yuan.

According to an article from Sina Finance dated September 29, 2025, the data shows that Mr. Hu Zhen initially held 37.2896 million shares, accounting for 29.68% of the total share capital. From September 30, 2021 onward, Mr. Hu Zhen made his first reduction of shares in Zhenjiang Co., Ltd., and to date, he has cumulatively reduced company shares by 5.5926 million shares, and cumulatively cashed out approximately 178 million yuan.

Based on calculations, Mr. Hu Zhen has cumulatively cashed out 302 million yuan.

(Editor: Wei Jingteng)

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