QINGLING MOTORS (01122) Signs Capital Reduction Agreement to Fully Control Qingling Mould

QINGLING MOTORS (01122) announced that on October 16, 2026 (after trading hours), the company, Qingling Group and Qingling Mould entered into a capital reduction agreement, pursuant to which Qingling Group intends to reduce its approximately 49.4% equity interest in Qingling Mould at a consideration of approximately RMB 202 million. Accordingly, the registered capital of Qingling Mould will be reduced from approximately RMB 309 million to approximately RMB 156 million, with the corresponding reduction in registered capital being approximately RMB 153 million. Upon completion of the capital reduction, the company's shareholding in Qingling Mould will increase from approximately 50.6% to 100%, and Qingling Mould will remain a subsidiary of the company, with its financial results continuing to be consolidated into the group's consolidated financial statements. Overall, Qingling Mould has been deeply engaged in the mould manufacturing sector for many years, with a solid operational foundation and a high-quality asset structure, a relatively low debt-to-asset ratio, relatively ample monetary funds, and a sound cash flow position. It possesses strong operational resilience and risk resistance capabilities, while also maintaining a stable profitability level and a mature market support system. Upon completion of the capital reduction, the group will hold 100% equity in Qingling Mould and fully enjoy its operating returns, which can effectively optimize the company's financial structure, enhance overall operating performance, and empower the company's long-term high-quality development.