Changchai (000570.SZ) plans to jointly establish an equity investment fund with its controlling shareholder.

Changchai (000570.SZ) announced that the company plans to jointly establish the Changzhou Changtou Xinhui No. 1 Equity Investment Fund (limited partnership) with a total size of 70 million yuan. The company will invest 30 million yuan as a limited partner, together with the controlling shareholder Changzhou Investment Group Co., Ltd. and Changzhou Xinhui Private Equity Fund Management Co., Ltd., focusing on advanced manufacturing projects, with a focus on high-end manufacturing, intelligent agricultural machinery, new energy, new power, and other strategic emerging industries and future industries. Housheng Investment is a wholly-owned subsidiary of Changchai, Investment Group is the controlling shareholder of Changchai, and Xinhui Private Equity is a wholly-owned subsidiary of Investment Group. Investment Group and Xinhui Private Equity are related parties of Changchai and Housheng Investment, and this investment constitutes a related party transaction. By using Housheng Investment as the investment entity to jointly establish the equity investment fund with the controlling shareholder, on the one hand, it can combine the financial capital of Investment Group and the industrial resource advantages of Changchai, and leverage the synergies of both parties. On the other hand, it can provide Changchai with a new path to explore the "transformation and upgrading", which is beneficial for the long-term development of Changchai.