Loncin Motor completes CMD stake sale; controlling shareholder unpledges shares

Loncin Motor Company Limited (Loncin Motor) has completed the transfer of its entire 67% equity interest in Italy’s CMD Costruzioni Motori Diesel S.p.A. Loncin Motor confirmed receipt of €1 million for the equity transfer and has paid the termination fee to CMD. All parties have signed the "Termination Agreement" and completed all closing matters, with Loncin Motor no longer holding any CMD equity. This move aligns with Loncin Motor's strategic development needs and addresses uncertainties in CMD's future.

Concurrently, Chongqing Zongshen New Intelligent Manufacturing Technology Co., Ltd. (Zongshen New Intelligent Manufacturing), Loncin Motor's controlling shareholder, announced the unpledging of 100,884,853 Loncin Motor shares, representing 4.91% of Loncin Motor's total share capital. These shares were originally pledged to Chongqing Rural Commercial Bank Co., Ltd. Banan Branch.

As of the announcement date, Zongshen New Intelligent Manufacturing holds 504,172,175 Loncin Motor shares, accounting for 24.55% of the total share capital. Following this unpledging, the cumulative number of pledged shares held by Zongshen New Intelligent Manufacturing is 403,287,322, representing 79.99% of its total holdings and 19.46% of Loncin Motor's total share capital. Zongshen New Intelligent Manufacturing has no immediate plans for further pledges and will unpledge remaining shares upon repayment.