Anhui Heli to acquire 51% of Jianghuai Heavy Duty Machinery

Anhui Heli plans to acquire 51% of Anhui Jianghuai Heavy Duty Engineering Machinery (Jianghuai Heavy Duty) from Anhui Forklift Group. The acquisition aims to eliminate horizontal competition and enhance operational efficiency within the group. The transaction, valued at 27,387.00 million yuan, is based on a valuation report from Zhongshui Zhiyuan Asset Appraisal Co., Ltd., which used the income approach to assess Jianghuai Heavy Duty’s equity value as 53,700.00 million yuan as of August 31, 2025.

The acquisition constitutes a connected transaction for Anhui Heli, requiring shareholder approval due to its cumulative value representing 6.42% of Anhui Heli's net assets as of the end of 2023. Jianghuai Heavy Duty, established in 2003 with a registered capital of 16,000.00 million yuan, will become a controlled subsidiary of Anhui Heli. The board of directors and supervisors of Anhui Heli have approved the acquisition, which is expected to integrate Jianghuai Heavy Duty into Anhui Heli's consolidated financial statements.

Anhui Heli projects a post-acquisition increase in operating revenue by 47,282 million yuan and net profit by 1,866 million yuan for 2024. The acquisition will be paid in cash, either from Anhui Heli’s own funds or from borrowings, with payment due within five working days of the contract's effective date. The equity transfer is free from any encumbrances such as pledges, freezes, or other restrictions.