Sustained losses: Shaanxi Heimao launches internal integration

On the evening of May 25, Shaanxi Heimao (601015) announced that the company plans to absorb and merge its wholly-owned subsidiary, Hancheng Heimao Gasification Co., Ltd.. Upon completion of this merger, the legal personality of Heimao Gasification will be cancelled, and all its assets, liabilities, personnel, and related businesses will be succeeded in their entirety by Shaanxi Heimao.

Basic Information of the Subsidiary

Established in 2016, Heimao Gasification primarily engages in the preparation of chemical projects and the production and sale of electric power. Its planned products cover methanol, LNG, liquid ammonia, sulfur, and deep-processed chemical coke categories, among others.

In terms of financial data, as of December 31, 2025, the company's audited total assets were 59.6777 million yuan, total liabilities were 7.2984 million yuan, and net assets were 52.3793 million yuan. There was no operating revenue in the current period, and the net profit recorded a loss of 4.8764 million yuan.

As of March 31, 2026, the company's unaudited total assets were 62.2471 million yuan, with no external liabilities, and net assets were 62.2471 million yuan. There was still no revenue in the current period; however, driven by non-operating income, a net profit of 9.8677 million yuan was achieved.

Merger Plan and Review Process

Since Heimao Gasification is a wholly-owned subsidiary of Shaanxi Heimao, this absorption and merger requires no payment of transaction consideration. This matter only requires approval by the company's board of directors. According to the articles of association and relevant rules, it does not need to be submitted to the shareholders' general meeting for a vote.

The company clarified that this merger will not change its name, registered capital, shareholding structure, or daily production and operation, and the board of directors and the senior management team will remain stable. Meanwhile, the financial data of Heimao Gasification was already included in the consolidated statements of the listed company, so this operation will not have a material impact on the company's overall financial position or operating results, nor does it involve any situation detrimental to the interests of shareholders.

Purpose of Integration and Current Business Status

Regarding the original intention of the merger, Shaanxi Heimao stated that this move aims to integrate internal assets and streamline the management structure, thereby further reducing overall operational and management costs.

Information shows that Shaanxi Heimao primarily engages in the production and sales of coking, coal chemical, and coal products. Its core products include coke, methanol, synthetic ammonia, and LNG, among which coke is the largest source of revenue. Affected by the weakening prosperity of downstream steel and chemical industries, the company's performance has been under continuous pressure over the past two years.

In 2025, the company achieved operating revenue of 10.132 billion yuan, a year-on-year decrease of 30.51%; the net profit attributable to shareholders recorded a loss of 1.177 billion yuan. Entering the first quarter of 2026, the downward trend in operations continued, with quarterly revenue of 2.345 billion yuan, a year-on-year decline of 9.28%, and a net profit attributable to shareholders loss of 313 million yuan, representing a year-on-year decrease of 19.74%.