CRRC Changchun to acquire Equipment Technology Company

On October 30, 2025, CRRC Changchun entered into an equity transfer agreement with Erqi Locomotive to acquire 100% equity in Equipment Technology Company for 186.2090 million yuan. This acquisition will make Equipment Technology Company a wholly-owned subsidiary of CRRC Changchun, supporting the development of a high-end intelligent equipment manufacturing base in Beijing and expanding CRRC's urban rail transit market presence.

The valuation of Equipment Technology Company was determined using an asset-based approach, appraising the total equity at 186.2090 million yuan. Before the transaction, CRRC Group provided 2.533 billion yuan in financial assistance to Equipment Technology Company, with an annualised interest rate of 2.4% to 2.6%. This financial assistance is exempt from shareholder approval under Hong Kong Listing Rules Rule 14A.90. The transaction itself is subject to reporting and announcement requirements but exempt from independent shareholders' approval due to percentage ratios.

Erqi Locomotive, a wholly-owned subsidiary of CRRC Group and a connected person, will no longer hold equity in Equipment Technology Company post-acquisition. The transaction is contingent upon approval by CRRC Changchun's general meeting. Two directors, Sun Yongcai and Wang An, abstained from voting due to their positions in CRRC Group.