Weichai Power (02338) and Sinotruk Jinan Truck inject 589 million yuan in capital into Weichai's new energy power technology.

Weichai Power (02338) announced that on March 12, 2026, the company and Sinotruk Jinan Truck Hydrogen Energy (as an existing shareholder) entered into a capital increase agreement with the target company (Weichai New Energy Power Technology Co., Ltd.). According to this agreement, the company and Sinotruk Jinan Truck Hydrogen Energy agreed to make a capital increase of RMB 4.12 billion (equivalent to approximately HK$4.68 billion) and RMB 1.77 billion (equivalent to approximately HK$2.01 billion) respectively to the target company, using the funds to increase the target company's registered capital and capital surplus. According to the capital increase agreement, the company and Sinotruk Jinan Truck Hydrogen Energy (as existing shareholders) agreed to make a total capital increase of RMB 5.89 billion (equivalent to approximately HK$6.68 billion) to the target company in cash, in accordance with their current relevant equity ratios in the target company. After the completion of the transactions under the capital increase agreement, the respective equity ratios held by the company and Sinotruk Jinan Truck Hydrogen Energy in the target company will remain unchanged. The target company was established in 2017 to support the group's development strategy in the field of new energy vehicles and related businesses. The capital increase will significantly improve the target company's financial situation and help enhance its competitiveness in the new energy powertrain market as soon as possible. After the capital increase, the company's equity stake in the target company will remain unchanged, not affecting the company's control over it. As a member of the group, the improved financial situation and key business initiatives of the target company are expected to benefit the group and align with its overall business strategy. Based on the above, the directors (including independent non-executive directors) believe that the company's entry into the capital increase agreement and the capital increase are conducted on normal commercial terms, fair and reasonable, and in the overall interests of the company and its shareholders. Although the capital increase agreement should be considered as an investment activity, and therefore not conducted in the group's daily or regular business operations, the directors (including independent non-executive directors) believe that the agreement and the transactions to be conducted under it are beneficial to the group's long-term business strategy.