CRRC Corporation Limited (1766) announced that its non-wholly-owned subsidiary, CRRC Changchun, signed an Equity Transfer Agreement on October 30, 2025, to acquire the entire equity interest in Beijing CRRC Equipment Technology Co., Ltd. (Equipment Technology Company) from CRRC Beijing Locomotive Co., Ltd. (Erqi Locomotive). The transaction is valued at RMB186.209 million, based on the asset-based valuation result.

CRRC Changchun’s move seeks to develop a high-end intelligent equipment manufacturing demonstration base in Beijing, expand its position in the urban rail transit market, and enhance strategic emerging-industries development. Upon completion, Equipment Technology Company will become a wholly owned subsidiary of CRRC Changchun and will be consolidated into CRRC Corporation Limited’s financial statements.

The seller, Erqi Locomotive, is wholly owned by CRRC GROUP, CRRC Corporation Limited’s controlling shareholder, making this acquisition a connected transaction under Chapter 14A of the Hong Kong Listing Rules. Since the highest applicable percentage ratio exceeds 0.1% but is below 5%, it only requires reporting and announcement, and does not necessitate independent shareholders’ approval.

Before the acquisition, CRRC GROUP provided RMB2.533 billion in financial assistance to Equipment Technology Company, with an annualized interest rate ranging from 2.4% to 2.6%. Additionally, the target company’s net loss since its establishment through September 30, 2025, was RMB21.7768 million, and its unaudited net assets stood at RMB169.0252 million as of the same date. All directors who participated in the decision concluded that the deal terms are fair and reasonable and in the overall interests of CRRC Corporation Limited and its shareholders.