Weichai Power (02338) announced that on March 12, 2026, the company and Sinotruk Hydrogen Energy, as existing shareholders, entered into a capital increase agreement with the target company, Weichai New Energy Power Technology Co., Ltd. Under this agreement, Weichai Power and Sinotruk Hydrogen Energy have agreed to contribute RMB 412 million (approximately HKD 468 million) and RMB 177 million (approximately HKD 201 million), respectively, in proportion to their current equity interests in the target company. The funds will be used to increase the target company's registered capital and capital reserve. According to the agreement, the total capital injection amounts to RMB 589 million (approximately HKD 668 million).

Following the completion of the transaction, the equity stakes held by Weichai Power and Sinotruk 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 new energy vehicle and related business sectors. The capital increase is expected to significantly improve the target company's financial position and help enhance the market competitiveness of its new energy powertrain business as soon as possible.

Post-capital increase, Weichai Power's shareholding percentage in the target company will remain the same, with no impact on its control. As a member of the group, the improved financial condition and implementation of key business initiatives by the target company are anticipated to benefit the group and align with its overall business strategy.

Based on the above, the directors, including independent non-executive directors, consider that the capital increase agreement and the transaction are conducted on normal commercial terms, fair and reasonable, and in the overall interests of the company and its shareholders. Although the agreement constitutes an investment activity outside the group's ordinary course of business, the directors believe it supports the group's long-term business strategy.