Loncin Motor boosts subsidiary's capital by 1.65bn yuan to streamline operations

Loncin Motor has announced a substantial capital increase for its wholly-owned subsidiary, Chongqing New Loncin Electromechanical Co., Ltd. (New Loncin Electromechanical), totaling up to 1,650,000,000 yuan. This includes a non-cash contribution of real estate valued at 289,975,500 yuan and a cash contribution of up to 1,360,024,500 yuan. This will raise New Loncin Electromechanical’s registered capital from 10,000,000 yuan to up to 1,660,000,000 yuan. The real estate assets, located in the B District of Loncin Motor's factory in Chongqing, were appraised at 289,975,500 yuan.

Loncin Motor's board of directors approved this capital increase and the transfer of various assets to New Loncin Electromechanical. The company will transfer equipment and inventory related to its general machinery business. Additionally, 100% equity of Loncin Yue General Power Technology Co., Ltd. will be transferred at its audited net asset value of 139,284,900 yuan as of September 30, 2025.

These transactions are part of Loncin Motor's plan to adapt to future business development and asset integration needs, aiming to streamline operations and leverage assets more effectively. The capital increase and asset transfers are internal to Loncin Motor’s consolidated reporting scope.