Zhejiang Renzhi Co Ltd

Renzhi Shares announced on the evening of September 9 that the control change, which had been in planning for nearly four months, has been terminated due to changes in the external market environment and unmet transaction conditions. The controlling shareholder and actual controller Chen Zehong, along with his concert party Pingda New Materials, signed a termination agreement for the share transfer with Shanghai Chengshi Enterprise Management Partnership, mutually agreeing to rescind the original share transfer agreement. As of now, Chen Zehong and his concert party Pingda New Materials together hold 19.51% of the company's shares, and after the termination of the control change, Chen Zehong remains the actual controller of Renzhi Shares. In May this year, the two parties had agreed to transfer a total of 83.1491 million shares, approximately 19.51% of the total share capital, in two steps. In the first phase, Shanghai Chengshi would acquire 5.19% of the shares at 7 yuan per share, Chen Zehong would waive voting rights on the remaining shares, and in the second phase, the remaining 14.33% of shares would be transferred. After the transaction was completed, Cheng Dong, the actual controller of Shanghai Chengshi, would become the new actual controller. Shanghai Chengshi has paid Chen Zehong a deposit of 30 million yuan and transferred 270 million yuan to a joint escrow account, of which 115 million yuan has been released and paid to Chen Zehong. With the termination of the transaction, Chen Zehong will subsequently refund the amounts already received. Since the planning of the control change began, Renzhi Shares' stock price has fallen by more than 30%, closing at 4.87 yuan per share on September 9, with a market value of approximately 2.1 billion yuan.

Renzhi Shares has released its 2026 interim report. The company's total operating revenue was 68.98 million yuan, and net profit attributable to the parent company was negative 12.13 million yuan, an increase in loss of 278,100 yuan compared with the same period last year. Net cash inflow from operating activities was 5.47 million yuan, the asset-liability ratio was 74.41 percent, gross margin was 7.93 percent, return on equity was negative 22.03 percent, and diluted earnings per share was negative 0.03 yuan. Total asset turnover was 0.20 times, and inventory turnover was 8.66 times, down 14.27 percent year on year. The number of shareholders was 30,900, and the top ten shareholders held 24.72 percent of total share capital.

Renzhi Shares disclosed its earnings forecast, expecting a net loss attributable to shareholders of 10.5 million to 13.5 million yuan in the first half of 2026, compared with a loss of 11.848 million yuan in the same period last year. The net loss after deducting non-recurring items is also expected to be 10.5 million to 13.5 million yuan, versus a loss of 11.8214 million yuan a year earlier. Basic loss per share is projected at 0.025 to 0.032 yuan. The company's main businesses include new energy power engineering services, oilfield environmental management, downhole operation technical services, pipe inspection and maintenance services, and the research, development, production and sales of new materials. During the reporting period, the company deepened the optimization of its core business, focused on promoting the two-way development of traditional energy and new energy engineering businesses, and strived to reduce costs and increase efficiency.