Jiangsu Zhenjiang New Energy Equipment (603507.SH) plans to sell 100% equity of its American subsidiary Zhenjiang for a transaction price of 22.15 million US dollars.

Jiangsu Zhenjiang New Energy Equipment (603507.SH) issued an announcement that its wholly-owned subsidiary, Tianjin Zhenjiang New Energy Technology Co., Ltd. (hereinafter referred to as "Tianjin Zhenjiang") and Zhenjiang (Hong Kong) Holdings Limited (hereinafter referred to as "Hong Kong Zhenjiang", together with "Tianjin Zhenjiang" referred to as the "seller"), intend to sell its subsidiary Zhenjiang New Energy (USA) Technology Co., Ltd. (hereinafter referred to as "American Zhenjiang", "the target company" or the "target") to Zetwerk Manufacturing Businesses Limited (hereinafter referred to as "Zetwerk", the "buyer" or the "counterparty"). The two parties have signed a "Equity Purchase Agreement" with a transaction price of 22.15 million US dollars. The announcement stated that due to the impact of local policies in the United States, the core customer of American Zhenjiang has temporarily adjusted the arrangements for related orders in the year 2026 to ensure compliance with the tax incentive policies for the protection project. Taking into account the current operational status of American Zhenjiang, the performance expectations for the first quarter of 2026, as well as uncertainties in future revenues, cash flow, and other aspects, in order to optimize the overall asset structure of the company, focus on core business development, and enhance overall operational quality and risk resistance, the company has decided to sell 100% equity of American Zhenjiang.