Qinchuan Machine Tool subsidiary secures new investors, capital injection

Qinchuan Machine Tool & Tool Group Share's controlled subsidiary, Shaanxi Intelligent Machine Tool Innovation Center Co., will undergo a capital increase and share expansion. The company will contribute shares from three subsidiaries and CNY 90.61 million in cash, while other original shareholders and new investors will contribute cash. This transaction introduces six new investors, including Qin Chuangyuan Technology Innovation Investment Co. and Shaanxi Fast Gear Transmission Group Co., with the latter being a related party.

Following the transaction, Qinchuan Machine Tool’s stake in the intelligent machine tool company will adjust from 72.1412% to 45.0667%, but it will remain a controlled subsidiary, maintaining the company's consolidated financial reporting scope. The intelligent machine tool company's registered capital will increase from CNY 50.00 million to CNY 200.00 million. The pricing for the capital increase is based on the appraised net asset value, set at CNY 1.02 per CNY 1 of registered capital.

The capital increase and share expansion aims to enhance technological research and development, expand market presence, and deepen industrial chain collaboration. The related party transaction was approved by the company's Ninth Board of Directors at its Nineteenth Meeting on November 10, 2025.