King Long Motor to fully acquire subsidiary King Long Longhai from CDB Capital

Xiamen King Long Motor Group announced its plan to fully repurchase the equity held by China Development Bank Capital Corporation Limited (CDB Capital) in its subsidiary, King Long (Longhai) Investment Co., Ltd. (King Long Longhai Company). This follows a resolution passed by the company's Eighth Board of Directors.

In 2015, CDB Capital invested 410 million yuan in King Long Longhai Company through a specialized fund, with a 10-year investment period and a 1.2% return rate. The company previously repurchased portions of the equity on December 29, 2020, for 86 million yuan and on September 22, 2023, for 119 million yuan, bringing King Long Motor Group's ownership to 75.88% and CDB Capital's to 24.12%.

The final repurchase of CDB Capital's remaining 24.12% equity in King Long Longhai Company is scheduled for September 29, 2025, for 205 million yuan. Upon completion, King Long Motor Group will hold 100% of King Long Longhai Company's equity, and CDB Capital will no longer be a shareholder. This transaction will not alter the company's consolidated financial statements, negatively impact its financial health or operations, or harm shareholder interests, and is expected to enhance strategic coordination and management.