Loncin Motor sells non-core assets to streamline operations

Loncin Motor is divesting its full 49.9988% equity in Zhuhai Longhua Helicopter Technology Co., Ltd. for CNY 1 and its full 66% equity in Zunyi Jinyi Machinery Casting Co., Ltd. for CNY 105.6 million. These transactions, approved by the board on November 13, 2025, are part of Loncin Motor's strategy to streamline operations and enhance asset quality by exiting non-core, loss-making businesses.

The Zhuhai Longhua divestment is projected to result in a negative impact of approximately CNY 36.2193 million on 2025 net profit, while the Jinyi Machinery divestment is expected to negatively impact 2025 net profit by approximately CNY 39.6716 million. Zhuhai Longhua has outstanding loans and receivables totaling CNY 69.8952 million owed to Loncin Motor. Due to Zhuhai Longhua's negative net assets and unfulfilled commercial objectives, these amounts are considered at risk of being unrecoverable. Loncin Motor will no longer consolidate Zhuhai Longhua or Jinyi Machinery in its financial statements.