Qingling Motors Co. Ltd. (01122) announced the execution of eight repurchase agreements on 16 March 2026 with Chongqing Transportation Equipment Financial Leasing Co., Ltd. and four independent dealers—Chengdu Changdao Automobile Rescue Service, Yunnan Changtong Automobile Rescue Service, Guizhou Changdao Road Rescue Service and Chongqing Changtong Technology Service.

Under the agreements, the financial leasing company will purchase and lease 100 new-energy vehicles to the dealers. Should a dealer default on rental payments or fail to perfect collateral, the leasing company may require Qingling Motors to repurchase both the vehicles and the corresponding lease receivables.

Key commercial terms • Maximum aggregate repurchase price: RMB18.52 million, derived from individual vehicle prices of RMB153,700–RMB199,300, the related unpaid rent and a symbolic retention price of RMB1 per vehicle. • Performance deposit: each dealer will lodge an amount equal to two months’ rent with Qingling Motors, which may be applied to any shortfall arising under repurchase. • Payment mechanics: upon receipt of a repurchase notice, Qingling Motors must pay the full repurchase price in a lump sum; if the vehicles cannot be delivered immediately, 50 % is payable upfront with the balance due within 60 days of recovery. • On completion, Qingling Motors obtains ownership of the vehicles and all associated lease receivables, and may dispose of the assets by sale, lease or other means.

Strategic rationale The company is migrating its new-energy commercial-vehicle business from direct sales to finance leasing to address customers’ preference for lower up-front costs. Providing repurchase obligations is described as a credit-enhancement measure common in China’s auto-finance industry and is expected to accelerate sales, widen market share and strengthen Qingling Motors’ ability to develop second-hand, sub-lease and aftermarket services. All repurchase payments will be funded through internal resources.

Listing Rules implications When aggregated with similar repurchase arrangements completed in the past 12 months, at least one applicable percentage ratio exceeds 5 % but remains below 25 %. The transaction is therefore classified as a discloseable transaction under Chapter 14 of the Hong Kong Listing Rules, requiring notification and announcement but not shareholder approval.

Counterparty profile The financial leasing company is 99.2 % owned by Chongqing City Transportation Development & Investment Group and ultimately controlled by the Chongqing State-owned Assets Supervision and Administration Commission. All counterparties are classified as independent third parties.

As at the announcement date, the carrying value of the 100 vehicles subject to repurchase matches the maximum repurchase price at approximately RMB18.52 million.