Lifan holdings to transfer stake in Chongqing Qianli Tech to Mercedes-Benz

Chongqing Lifan Holdings Co., Ltd., a major shareholder in Chongqing Qianli Technology Co., Ltd., will transfer 135,633,002 shares, representing 3.00% of the company's total share capital, to Mercedes-Benz (Shanghai) Digital Technology Co., Ltd. The transaction, priced at CNY 9.87 per share, totals CNY 1,338,697,729.74 and is intended to resolve debts stemming from a stock pledge repurchase agreement. This transfer will reduce Lifan Holdings' stake from 13.68% to 10.68%.

The sale involves two separate agreements, with 34,293,002 shares (0.76%) initially pledged to Shenwan Hongyuan Securities Co., Ltd., and 101,340,000 shares (2.24%) pledged to Huachuang Securities Co., Ltd. Mercedes-Benz (Shanghai) Digital Technology Co., Ltd. has committed to not reduce its holdings for 12 months post-transfer.

The transaction does not trigger a mandatory tender offer and will not alter the company's controlling shareholder or actual controller. The transfer is pending regulatory confirmation from the Shanghai Stock Exchange and completion of share transfer procedures at China Securities Depository and Clearing Corporation Limited.