Chengdi Xiangjiang announced the termination of a fixed-price private placement that had been in planning for nearly two years, altering the plan for state-owned capital to take control. On August 14, the company's board of directors approved the termination proposal and signed a rescission of subscription agreement and a rescission of voting rights waiver agreement with the subscriber, China Energy Engineering Beijing Smart Computing Technology Company. Under the original plan, China Energy Engineering Smart Computing intended to subscribe to 139 million shares at 5 yuan per share, raising no more than 697 million yuan, and would have held a 23.08 percent stake in the company after the issuance, with the State-owned Assets Supervision and Administration Commission of the State Council becoming the actual controller. The company said the termination was mainly due to significant changes in the capital market environment, industry development, and the commercial basis and strategic arrangements of the issuance, and cautioned that it expects a net loss attributable to the parent company of 7.2 million to 10.8 million yuan in the first half of 2026, and that it does not yet have a computing power leasing business. Before the termination announcement, the company's share price had hit the daily upper limit for three consecutive trading days, then fell for two consecutive days, closing at 11.48 yuan per share on August 17, down 3.69 percent.
Shanghai Chengdi Constr CoTermination of private placement and expected net loss in H1 2026
As subscriber, termination of subscription agreement affects its planned investment
