CMOC subsidiary invests 500m yuan in private equity fund

Xizang Shmok, a wholly-owned subsidiary of CMOC Group Limited, has entered into a partnership agreement to invest 500 million yuan in the Boyu Xinzhi Xinchan (Ningbo) Equity Investment Limited Partnership Fund. The fund, with a target size of 8-10 billion yuan and an initial term of 12 years, will primarily focus on technology, healthcare, consumer products, and retail sectors. Boyu Tianshu will serve as the general partner, responsible for the fund's operation and management.

This investment is considered a connected transaction under Chapter 14A of the Listing Rules because CATL, which indirectly controls approximately 24.91% of CMOC, is also a limited partner in the fund. Despite being a connected transaction, the investment is exempt from circular, independent financial opinion, and shareholder approval requirements as the highest applicable percentage ratio is between 0.1% and 5%.

The company stated that the investment, sourced from its own capital, aims to enhance investment efficiency and generate reasonable returns without affecting daily operations or cash flow requirements. The terms of the partnership agreement were determined through arm's length negotiations and are considered fair and reasonable by the directors.