Tianma Bearing subsidiary acquires fund units in connected transaction

Tianma Bearing Group's wholly-owned subsidiary, Xuzhou Runxi Management Consulting Partnership, is set to acquire 9,000,000 units of Jiaxing Lingben Yunhua Equity Investment Partnership at a price of 1.8919 yuan per unit, totaling 17,027,100 yuan. This acquisition will result in Xuzhou Runxi holding approximately 9.78% of the fund’s total paid-in capital, enhancing the company’s profitability. The fund specifically invests in Kirin Software Co., Ltd., with the transaction based on market prices and Kirin Software's latest valuation.

The transaction, approved by the board on September 4, 2025, constitutes a connected transaction due to multiple related parties involved with the Lingben Yunhua Fund, including affiliates of the controlling shareholder and directors. Post-acquisition, Xuzhou Runxi will not control or significantly influence the fund's operations, classifying the investment as a financial asset measured at fair value through profit or loss.

In a separate but related development, Tianma Bearing also disclosed that its subsidiary, Qinghai Qingyi CNC Equipment Co., Ltd., will secure a 7 million yuan loan from the Bank of China, with Zhejiang Qizhong CNC Equipment Co., Ltd. providing a joint liability guarantee. This guarantee, extending for 12 months, is a continuation of an existing loan and received board approval.