CRRC to spin off subsidiary CRRC Qishuyan, aims for ChiNext listing

CRRC Corporation Limited will spin off its subsidiary, CRRC Qishuyan Institute Co., Ltd., for a separate listing on the Shenzhen Stock Exchange ChiNext Board. The extraordinary general meeting to approve this strategic move is set for December 29, 2025. This decision aligns with national strategies to foster emerging industries, deepen state-owned enterprise reform, and leverage capital markets for enhanced development. The spin-off is expected to improve CRRC Qishuyan's specialized operations, stimulate internal vitality, and allow it to access broader financing channels.

The proposed spin-off involves CRRC Qishuyan issuing A-shares with a par value of 1.00 yuan. The offering targets domestic investors, including institutional and individual investors with ChiNext Board accounts, following regulatory approvals. CRRC Qishuyan's primary business involves industrial transmission and metal material processes, supporting rail transit equipment, energy, engineering machinery, automotive parts, and smart manufacturing. This strategic separation aims to unlock CRRC Qishuyan's intrinsic value, optimize CRRC Corp.'s overall valuation, and enhance market competitiveness.

The spin-off ensures both CRRC Corp. and CRRC Qishuyan will maintain independent operations in personnel, assets, finances, and business systems, complying with regulatory requirements regarding related-party transactions and competition. CRRC Corp.'s consolidated net profit attributable to shareholders (after deducting non-recurring gains and losses) for 2022, 2023, and 2024 was 7.971 bn yuan, 9.106 bn yuan, and 10.143 bn yuan, respectively, fulfilling the three-year continuous profitability requirement. The spin-off will not negatively impact CRRC Corp.'s independent operations or sustained profitability.