Weichai Power (02338) plans to spin off Weichai Rayco to independently list on the main board of the Hong Kong Stock Exchange.

Weichai Power (02338) announced that the board of directors has considered and approved the proposal to potentially spin off the shares of Jiangsu Nonghua Intelligent Agriculture Technology Co., Ltd. (Weichai Rayway) and list them independently on the Main Board of The Stock Exchange of Hong Kong Limited. Subject to compliance with the minimum issue ratio for spin-off listings, minimum public shareholding ratio, minimum circulation ratio, and other regulatory requirements, the number of H shares issued in this offering shall not exceed 25% of the total share capital of Weichai Rayway after the issuance (before the exercise of the over-allotment option). This offering consists entirely of new shares offered publicly, and the company's shareholders do not offer shares for public sale. The offering may involve an over-allotment option, with the number of shares issued under the over-allotment option not exceeding 15% of the initial public offering shares. The final offering ratio and quantity will be determined by the Weichai Rayway shareholders' meeting authorizing the board of directors and/or authorized individuals based on legal regulations, regulatory approvals or filings, and market conditions. The board believes that the listing of Weichai Rayway shares on the Main Board of The Stock Exchange of Hong Kong aligns with the government's policy direction to enhance the core competitiveness of state-owned assets and increase international influence. The potential spin-off will allow Weichai Rayway to seize the opportunity of capital market reform and provide it with direct access to the capital market, diversifying its financing channels and enhancing its operational capabilities to bring stable returns to investors and contribute to sustainable development. Additionally, the expected spin-off is anticipated to enhance Weichai Rayway's market influence and strengthen its competitive advantage and position, helping it achieve the strategic goal of becoming a global leading brand in the Intelligent Agriculture Technology sector. Given that the company will continue to be the controlling shareholder of Weichai Rayway after the potential spin-off, the above expectations are expected to increase the overall value of the group and further increase value for the company's shareholders.