Xiamen Tungsten boosts motor subsidiary stake, alters guarantees and transactions

Xiamen Tungsten will increase its equity in Xiamen Tungsten Motor Industry Co., Ltd. (Xiamen Tungsten Motor) from 40% to 51% through a RMB 251,204,081.63 capital increase. This makes Xiamen Tungsten Motor a controlled subsidiary, bringing it and its subsidiaries, including Xiamen Shituo Yuneng Technology Co., Ltd., into Xiamen Tungsten's consolidated financial statements.

As a result, an existing RMB 100,180,000 guarantee provided by Xiamen Tungsten Motor to Xiamen Shituo Yuneng for its financing will become an external guarantee for Xiamen Tungsten. This guarantee is valid until the 2025 annual shareholders' meeting. Previous counter-guarantees between Xiamen Tungsten, Xiamen Tungsten Motor, and Xiamen Shituo Yuneng will be terminated.

The transaction, approved by Xiamen Tungsten's board and audit committee, also prompts adjustments to 2025 related party transaction forecasts. The total forecast for daily related party transactions is adjusted from RMB 264,075m to RMB 245,112m, reflecting the change in Xiamen Tungsten Motor’s status. Additionally, Xiamen Tungsten plans to continue using idle raised funds, up to RMB 2,100m, for cash management.