CRRC to spin off subsidiary for ChiNext listing

CRRC Corporation Limited (CRRC) will convene its 2025 third extraordinary general meeting on Monday, 29 December 2025, to seek shareholder approval for the spin-off and listing of its subsidiary, CRRC Qishuyan Institute Co., Ltd. (CRRC QSYRI). The proposed spin-off aims to enhance CRRC QSYRI's professional operation, stimulate internal vitality, and improve its development quality by leveraging capital market policies. CRRC QSYRI intends to issue RMB ordinary shares (A shares) with a nominal value of RMB1.00 each.

The spin-off is expected to be beneficial for CRRC by accelerating CRRC QSYRI's growth, enhancing its intrinsic value, and improving liquidity. Furthermore, the spin-off is anticipated to broaden CRRC QSYRI's financing channels and reduce CRRC's overall asset-liability ratio. As of 2024, CRRC's net profit attributable to shareholders was RMB10.143 bn, with CRRC QSYRI contributing RMB308m.

The company's net assets attributable to shareholders were RMB168.774 bn, while CRRC QSYRI's attributable net assets were RMB4.891 bn. CRRC has provided undertakings to avoid horizontal competition and regulate related-party transactions with CRRC QSYRI, ensuring the independence and interests of all shareholders are protected.