POWER XINCHEN (01148) intends to acquire a 53% stake in AVIC Lantian Equipment for 147 million yuan. Trading will resume in the afternoon of October 16.

POWER XINCHEN (01148) announces that on October 16, 2025, the buyer, Mianyang POWER XINCHEN (an indirect wholly-owned subsidiary of the Company), and the Company (as the subscriber), entered into a share purchase agreement with the seller Shanxi Lantian Industrial Group and the target company Zhonghang Lantian Equipment, whereby the buyer agreed to purchase from the seller and the seller agreed to sell to the buyer the sale equity (53% equity in the target company) for a maximum of approximately RMB 147 million (i.e. share transfer); and the subscriber agreed to make a capital contribution of USD 5 million equivalent to RMB to the target company after the completion of the share transfer (i.e. capital increase). After the completion of the share transfer, the subscriber shall make a capital contribution of USD 5 million equivalent to RMB to the target company (capital increase consideration). After the capital increase is completed, assuming the target company's equity structure remains unchanged, the buyer shall hold approximately 60% equity in the target company. The target company will become a subsidiary of the buyer and an indirect non-wholly-owned subsidiary of the Company. It is reported that the target company's main business includes manufacturing of automobiles, special equipment, mining machinery, as well as production of automobile parts, industrial robots, and intelligent material handling equipment. As of the date of this announcement, the target company is wholly owned by the seller. The Group is specialized in the development, manufacturing, and sale of automotive engines and parts for passenger cars and light commercial vehicles in China, and is actively seeking to strengthen its core business. The acquisition of the target company is in line with the Group's strategy to achieve growth through integrating complementary businesses with synergies. Leveraging on the target company's good performance and reputation in the special vehicles and off-road vehicles industry, the Group expects to improve operational integration, diversify product offerings, and enhance its market position in the engine and parts industry. The acquisition of the target company will enable the Group to expand its product supply capability and reach a broader market, including the special vehicles and off-road vehicles market. It is expected that this expansion will bring additional value to shareholders through optimizing business resources and promoting sustainable growth. Expansion of customer base and market share: The existing customer relationships and business network of the target company will immediately expand the Group's customer base. This will provide opportunities for access to new projects and allow the companies' customers to cross-promote services. Achieving cost savings and operational efficiency: Through the integration of various administrative, research and development, procurement, and project management functions, the enlarged Group expects to achieve economies of scale, reduce duplicate costs, and improve overall operational efficiency. Future business development potential: The combined resources, expertise, and customer networks of the Group and the target company are expected to create a solid platform for seeking new business opportunities. The Company has applied to the Stock Exchange for the resumption of trading of its shares on the Stock Exchange, to be effective from 1:00 pm on Thursday, October 16, 2025.