Chongqing Machinery & Electric controlling shareholder structure to change

Chongqing Machinery & Electric Co., Ltd. (HKEX: 2722) announced a change in the shareholding structure of its controlling shareholder, CQMEHG. Yufu Holding will make a capital increase of RMB5,000 million through cash and non-cash contributions to CQMEHG. Upon completion of the capital increase, Yufu Holding will hold approximately 44.58% equity interest in CQMEHG. Additionally, Chongqing SASAC will gratuitously transfer its 35.42% equity interest in CQMEHG to Yufu Holding. After the "Internal Restructuring", Yufu Holding will directly hold 80% equity interest in CQMEHG, becoming the direct controlling Shareholder of CQMEHG and indirect controlling Shareholder of the Company. Chongqing SASAC will remain the ultimate controlling Shareholder. Yufu Holding was granted a waiver from making a mandatory general offer for all the securities of the Company.