King Long Motor Group streamlines structure with subsidiary equity transfer

Xiamen King Long Motor Group Co., Ltd. (King Long Motor) announced the proposed transfer of a 63.0757% equity stake in King Long United Automotive Industry (Suzhou) Co., Ltd. (Suzhou King Long) from its wholly-owned subsidiary, King Long United Automotive Industry Co., Ltd. (King Long United), to King Long Motor itself. This internal, gratuitous transfer aims to optimize the management structure and enhance operational efficiency.

The transfer, approved by King Long Motor's board of directors, is effective as of December 31, 2024. It does not involve any cash payment or constitute a related party transaction or a major asset restructuring under relevant regulations. Post-transfer, King Long Motor's direct ownership in Suzhou King Long will increase from 2.1405% to 65.2162%, while King Long United will no longer hold shares.

This equity transfer will not impact the company's consolidated financial statements, as Suzhou King Long remains within the group's consolidation scope. It is not expected to adversely affect King Long Motor's future financial or operating conditions, nor will it result in the transfer of debts or staff changes, with Suzhou King Long retaining all assets, liabilities, and employee relations.