XCMG(SZ:000425) Zheng Quan Zhi Xing·2025-09-02 16:14Core Viewpoint - The company, XCMG Group, is transferring 100% of its subsidiary, Fluitronics GmbH (Germany FT), to EDDI International Investment PTE. LTD. and Yantai EDDI Precision Machinery Co., Ltd. for a total price of 4 million euros, which will result in passive financial assistance amounting to 346.5 million euros after the transfer is completed [1][2][3]. Summary by Sections Financial Assistance Overview - XCMG Hong Kong Development and XCMG Europe GmbH have lent a total of 346.5 million euros to Germany FT, which is a wholly-owned subsidiary of XCMG Hong Kong Development. The loans consist of 296.5 million euros and 50 million euros, with the transfer of shares expected to be completed by December 20, 2025 [2][3]. Financial Status of Germany FT - As of March 31, 2025, Germany FT reported total assets of 785.09 million euros and total liabilities of 621.29 million euros. The company generated revenue of 427.91 million euros in the first quarter of 2025, with a net profit of -11.84 million euros [3][4]. Buyer Information - EDDI Precision specializes in manufacturing and sales of hydraulic machinery and components, while EDDI International is involved in various mechanical and robotic manufacturing sectors [4]. Loan Details - The loans provided by XCMG Hong Kong Development and XCMG Europe are expected to be repaid by EDDI Precision before the loan maturity dates, ensuring the recovery of principal and interest [5]. Board Opinion - The board of directors believes that the passive financial assistance resulting from the share transfer is a continuation of existing operational loans and that the associated risks are manageable, with no significant impact on the company's daily operations or shareholder interests [5][6]. Financial Assistance Amount - After the transfer, the passive financial assistance will amount to 346.5 million euros, approximately 26.08 million yuan, which represents 0.04% of the company's latest audited net assets [5].