China Pingmei Shenma Group plans to absorb and merge Henan Energy, marking deep integration of provincial state-owned energy enterprises.

On August 31, Henan Energy Group issued a suggestive announcement, disclosing that China Pingmei Shenma Holding Group Co., Ltd. intends to implement a merger by absorption of Henan Energy Group. This is a follow-up key step in the strategic restructuring of the two provincial-state-owned energy and chemical enterprises in Henan Province, and will complete the main body integration from a legal perspective.

Core Terms of the Transaction

- Merger Method: Merger by absorption, China Pingmei Shenma Group will be the surviving entity

- Acquired Party: Henan Energy Group, which is now a wholly-owned subsidiary of Pingmei Shenma Group

- Actual Controller: State-owned Assets Supervision and Administration Commission of Henan Province, which will remain unchanged after the merger

- Debt Undertaking: All 9 inter-bank debt financing instruments of Henan Energy Group will be succeeded by Pingmei Shenma

- Current Progress: The plan has been approved by the provincial government, pending the completion of legal pre-procedures such as notifying creditors and holding a creditor meeting

After the completion of this merger, all assets, liabilities, businesses, personnel, contracts, qualifications and all rights and obligations of Henan Energy Group will be legally succeeded by the surviving entity, China Pingmei Shenma Group. The announcement stated that this merger by absorption will not change the actual controller of the enterprise, and will not have a significant impact on the normal production and operation of the enterprise.

Review of the Restructuring Process

This merger by absorption is not an impulsive move, but the second phase of the "first restructuring, then merger" plan for Henan Energy and Pingmei Shenma.

In September 2025, the Henan Provincial Party Committee and the provincial government deployed the strategic restructuring of the two groups. The State-owned Assets Supervision and Administration Commission of Henan Province increased capital to China Pingmei Shenma Group with its 100% stake in Henan Energy Group. After the capital increase was completed, Henan Energy Group became a wholly-owned subsidiary of Pingmei Shenma Group, completing the equity integration; this merger by absorption is to further unify the legal entities on this basis.

Previously, only the equity relationship was adjusted, and Henan Energy still retained its independent legal person status; after this merger by absorption is implemented, the legal person entity will be cancelled, realizing the integrated management of assets and debts.