Mei Ri Jing Ji Xin Wen·2026-02-13 13:04Core Viewpoint - The asset swap between Longxin General and Zongshen Power aims to resolve the existing competition between the two companies and focus on specialized development in their respective fields [1][2]. Group 1: Asset Swap Details - Longxin General plans to exchange its general machinery assets and liabilities for Zongshen Power's motorcycle engine assets and liabilities, with the core asset being the equity of Chongqing Zongshen Engine Manufacturing Co., Ltd. [1][2] - The transaction price for the asset swap has not been determined yet and will be based on the assessed value of the assets involved [1][2]. - The swap is expected to be an associated transaction but will not constitute a major asset restructuring, and it will not involve issuing shares or changing the controlling shareholders [2]. Group 2: Company Focus Post-Swap - After the transaction, Longxin General will concentrate its resources on developing motorcycle complete vehicles and engines, enhancing core power technology research and global channel layout [2][5]. - Zongshen Power will focus on its core business in general machinery, which has technological advantages and market prospects, optimizing asset and resource allocation [2][5]. Group 3: Historical Context and Performance - The asset swap has been anticipated, with prior announcements indicating plans for capital increase and asset transfers within Longxin General [3]. - Longxin General's motorcycle business achieved sales revenue of 7.273 billion in the first half of 2025, a year-on-year increase of 23.14%, while its general machinery business saw revenue of 2.185 billion, up 52.82% [5]. - Zongshen Power's general machinery business reported revenue of 3.647 billion, a 73.06% increase, and its motorcycle engine business generated 2.330 billion, growing by 14.39% in the same period [6].