CRRC Corporation Limited (ASX: 01766) has announced that its wholly-owned subsidiary, CRRC Capital Management Co., Ltd., along with its own wholly-owned subsidiary, Huayu Zhengdao (Beijing) Private Equity Investment Fund Management Co., Ltd., plans to co-establish a new venture capital fund with other investors. The fund is tentatively named the Huayu Guoke Zhanxin (Suzhou) Venture Capital Investment Fund Partnership (Limited Partnership), with the final name subject to business registration approval.

On June 15, 2026, the relevant parties signed a partnership agreement for the fund. The agreed partnership term is 12 years, with the fund having an 8-year lifespan comprising a 5-year investment period and a 3-year exit period. This exit period may be extended by one year with the consent of all partners.

Huayu Zhengdao will serve as the fund's general partner. The limited partners include CRRC Capital Management, the Zhongke Scientific and Technological Achievements Transformation Venture Capital Investment Fund (Guangdong) Partnership, the Jiangsu Suzhou New Energy and Intelligent Cockpit Industry Special Mother Fund, Zhangjiagang Industrial Capital Investment Co., Ltd., and Changchun Equity Investment Fund Management Co., Ltd.

The total capital commitment from all partners is RMB 1.5 billion. CRRC Capital Management, as a limited partner, has committed RMB 570 million. Huayu Zhengdao, acting as both the general partner and the private fund manager, has committed RMB 30 million.

Strategic Focus and Objectives

Huayu Zhengdao operates as CRRC Capital's venture capital fund management platform. Its strategy is deeply integrated with CRRC's core business, fostering collaboration between industry and finance. It aims to drive synergistic innovation with research institutes and leverage industrial application scenarios to deeply integrate innovation chains, industrial chains, capital chains, and talent chains.

The company has assembled a professional management and investment team combining internal business experts with market-oriented professionals. This team conducts specialized capital operations, with the goal of supporting CRRC's industrial development through equity investments and fund management.

Investment Direction and Corporate Synergy

The fund will primarily invest in strategic emerging industries and future-oriented sectors. Key areas include new energy equipment, new energy vehicles, intelligent manufacturing, future information technology, future networks, future space, and future manufacturing. These investment focuses align with the company's industrial layout and offer potential for synergy.

The investment by CRRC's subsidiary in this fund represents a strategic move to serve the development of its core business. It aims to innovate investment models, deepen the integration of industry and finance, continuously cultivate and expand strategic emerging industries, and support the company's long-term growth.