Weichai Power proposes dividend, halts Torch spin-off, restructures governance

Weichai Power (HKEX:2338) has announced a series of proposed actions, including a cash dividend, the temporary shelving of a spin-off, and significant governance restructuring, all to be voted on at the annual general meeting (AGM) scheduled for June 13, 2025. The board is proposing a cash dividend of RMB3.47 per 10 shares, contingent on shareholder approval. Simultaneously, the company is temporarily terminating the planned spin-off and separate listing of its Torch Technology subsidiary on the ChiNext Board, citing current market conditions and business strategy alignment. The board also proposes dissolving the Supervisory Committee, transferring its duties to the audit committee, and amending the Articles of Association and Rules of Procedure to reflect the change. In the supplementary circular, Weichai seeks shareholder approval for a new financial services agreement with Shandong Finance, including annual deposit caps of RMB40 billion for each of the next three years. Shareholders are urged to review details of all proposals in both circulars and vote according to their best interests, and with the exception of Weichai Holdings will not be required to abstain from voting on any matters at the AGM. These strategic moves aim to improve operational efficiency, streamline corporate structure, and adapt to evolving market dynamics, while ensuring regulatory compliance and safeguarding shareholder value.