YANKUANG ENERGY: Suggests spinning off Kason Technology to be listed on the National Equities Exchange and Quotations

According to the announcement from YANKUANG ENERGY (01171), the company plans to spin off its controlling subsidiary, Kasong Technology Co., Ltd., and list it on the National Equities Exchange and Quotations (NEEQ). Kasong Technology submitted its application for listing on the NEEQ to the National Equities Exchange and Quotations Co., Ltd. on September 22, 2025. Kasong Technology is primarily engaged in the research, development, production, and sales of various industrial lubricants and grease products. Based on an analysis and judgment of future industry trends, it is suggested that a successful spin-off will benefit Kasong Technology by allowing it to focus on strengthening its core lubricant business while fully leveraging the integration advantages of industrial lubricants and online oil monitoring services, advancing technological research and development in online oil monitoring and related fields, achieving technological innovation to drive efficient results, and continuously promoting the development of the group's high-end equipment manufacturing sector, thereby expanding the group's industrial scale. The main reasons and benefits for the proposed spin-off are as follows: (a) A successful spin-off will help Kasong Technology broaden its financing channels, increase investment in the industrial lubricant business, consolidate market competitiveness, further expand its business scope, enrich its product line, and achieve leapfrog development, thereby enhancing the profitability and overall competitiveness of the group's high-end equipment manufacturing sector, helping the company achieve sustainable and healthy long-term development. (b) The proposed spin-off will benefit Kasong Technology by gaining more market exposure and media attention, enhancing its visibility and brand image, establishing stronger credibility among customers, suppliers, and partners, attracting talented individuals to join the company, and improving Kasong Technology's creditworthiness with financial institutions, making it easier to obtain loans and credit. It will also help enhance the overall brand image and market influence of the company, attracting more quality resources and cooperation opportunities, bringing synergistic effects to other business sectors of the group. (c) During the spin-off process, Kasong Technology will improve its financial systems, information disclosure mechanisms, and internal control systems in accordance with regulatory requirements. This will not only help Kasong Technology enhance its management standards and financial transparency, reduce operational risks, and improve operational efficiency but also assist the company in establishing a more comprehensive governance and control framework at the group level, providing shareholders with clearer insights into the business and financial status. (d) After the completion of the proposed spin-off, the New Third Board will provide market price references for the valuation of Kasong Technology, better reflecting its intrinsic value, which will facilitate reasonable valuations of the group's various business sectors in the capital market, allowing the value of the company's quality assets to be fully realized in the capital market and maximizing shareholder interests; and (e) After the completion of the proposed spin-off, the company will still control Kasong Technology and continue to consolidate its financial statements. The company will continue to enjoy the benefits brought by the future business development and growth of Kasong Technology