Weichai Power: Shandong Heavy extends non-competition undertaking by five years

Weichai Power Co., Ltd. announced its de facto controller, Shandong Heavy Industry Group Co., Ltd., will extend its non-competition undertaking by five years, with all original terms remaining unchanged. This extension aims to resolve business overlaps between Weichai Power and CNHTC subsidiaries, which emerged after Shandong Heavy Industry gained control of CNHTC in December 2019.

Shandong Heavy Industry cited complex regulatory procedures, multiple listed entities in Shenzhen and Hong Kong, and state-owned asset supervision across provinces as reasons for the extension, indicating the original five-year undertaking could not be fulfilled on schedule.

Weichai Power's independent non-executive directors reviewed and approved the extension, confirming it aligns with relevant guidelines and does not harm the company's operations or shareholder interests. The board also approved the resolution, with several directors abstaining due to conflicts of interest. The proposed extension is subject to shareholder approval, and a circular with further details will be dispatched.

In a supplemental announcement, Weichai Power confirmed the nomination of Ms. Zhang Weili as an independent non-executive director, subject to shareholder approval. Ms. Zhang has confirmed her independence, lack of financial interest, and no connections with core connected persons of the company.