Chinese regulators have requested additional disclosures from Zhejiang Jinlong Motor regarding its historical capital increases, share transfer pricing, and the rationale behind these valuations, as part of the company's proposed Hong Kong initial public offering.

On August 21, the China Securities Regulatory Commission (CSRC) published its latest round of supplementary material requirements for overseas listing filings, covering the period from August 17 to August 21, 2026. The CSRC's International Department issued comments to three companies, including Jinlong Motor, which was asked to provide further details on whether any share subscription prices were abnormal, whether there were any instances of benefit transfers, and whether all capital contributions were fully paid.

The request follows Jinlong Motor's filing with the Hong Kong Stock Exchange on May 25, where the company submitted its listing application for the Main Board, with Nissin Capital acting as the sole sponsor. The CSRC has asked the company to have its lawyers verify and issue clear legal opinions on several matters.

Firstly, the regulator wants clarification on the pricing and valuation basis for all historical capital increases and share transfers, including whether any subscription prices were abnormal or involved benefit transfers. The CSRC also seeks confirmation that all capital contributions were actually paid in full, with no instances of unpaid obligations, capital withdrawal, or defects in the contribution methods.

Secondly, the CSRC requires an analysis of the company's legal status before its ownership reform, referencing the applicable laws and regulations at the time. This includes a clear opinion on whether the reform was approved by the competent authorities, whether the legal basis was sufficient, and whether the procedures followed were lawful. The company must also provide opinions from the relevant authorities on the legality of the ownership reform or asset acquisition process, and whether it resulted in any loss of state-owned or collective assets.

Thirdly, the company must provide a conclusive opinion on whether its establishment and all historical equity changes were legal and compliant, as well as on its legal personality and effective existence.

Additionally, the CSRC has asked Jinlong Motor to clarify whether its business, and that of its subsidiaries, involves any sectors restricted or prohibited for foreign investment, and whether it will continue to meet foreign investment access requirements before and after the proposed listing and full circulation of shares.

The regulator also requires the company to disclose whether any shares held by shareholders participating in the proposed full circulation arrangement are subject to pledges, freezes, or other rights defects.

According to the prospectus, Jinlong Motor specializes in the design, development, manufacturing, and sales of small and medium-sized high-efficiency industrial motors and related control systems. The company has nearly 40 years of experience in motor manufacturing, tracing its roots back to its predecessor, Huangyan Electric Machinery Factory. Driven by tightening energy efficiency requirements and the increasing adoption of Industry 4.0 and smart manufacturing, the company focuses on high-efficiency, variable-frequency, and precision-performance industrial motors, primarily permanent magnet synchronous motors (PMSM) and three-phase induction motors (3-PHIM).