China XD Electric subsidiary acquires assets to boost southwest growth

China XD Electric announced its wholly-owned subsidiary, XD Electric Special, will acquire land use rights, buildings, and machinery from XD Electric Asset for 13,184.5633 million yuan (inclusive of tax). This related party transaction, involving assets valued at 9,338.08 million yuan on the books as of February 28, 2025, received approval from the company's Fifth Board of Directors and independent directors, with related parties abstaining from the vote. The transaction is not considered a major asset restructuring and does not require shareholder approval.

The acquisition includes 29 buildings, 30 structures, 3 land use rights, and 37 machinery items located in Chengdu's Wenjiang District. The asset appraisal indicated a valuation increase of 41.19% from the book value, primarily due to rising property and material costs, as well as an increase in land values over time.

This acquisition, approved by the board on November 7, 2025, with five related directors abstaining, is part of China XD Electric's strategy to streamline asset ownership, improve operational efficiency, and support the growth of XD Electric Special in the southwest. Concurrently, the company also approved the appointment of Sun Chaoliang as deputy general manager and passed resolutions at its first extraordinary general meeting of 2025 to adjust daily related party transaction forecasts and amend company articles.