Core Viewpoint - GAC Group is advancing its capital operations through GAC Honda by acquiring a 50% stake in Dongfeng Honda Engine and increasing its capital to achieve full ownership, thereby enhancing its supply chain for core components [1][2]. Group 1: Equity Acquisition and Capital Increase - GAC Honda signed a contract with Dongfeng Motor Group on October 30 to acquire a 50% stake in Dongfeng Honda Engine for 1.172 billion RMB (approximately 1.287 billion HKD) [2]. - To achieve full ownership, GAC Honda will increase its registered capital from 541 million USD to 867 million USD, with a total capital increase of 326 million USD (approximately 2.544 billion HKD) [2]. - GAC Group will contribute 50% of the capital increase, amounting to 163.1 million USD (approximately 1.172 billion RMB), while Honda and Honda China will contribute through their existing stakes [2][3]. Group 2: Financial Performance and Valuation of Dongfeng Honda Engine - Dongfeng Honda Engine's revenue is projected to improve significantly, increasing from 9.566 billion RMB in 2023 to 17.852 billion RMB in 2024, with a turnaround from a net loss of 228 million RMB to a profit of 84 million RMB [4]. - The independent valuation of Dongfeng Honda Engine shows a net asset book value of 2.029 billion RMB and an assessed value of 2.345 billion RMB, reflecting an increase of 316 million RMB (15.60%) [3][4]. Group 3: Strategic Implications and Financial Impact - The transaction aims to enhance GAC Honda's integrated operations in the engine sector, improving supply chain stability and reducing transaction costs [4]. - Post-transaction, Dongfeng Honda Engine will be included in GAC Group's consolidated financial statements, supporting the group's transition towards smart and electric vehicle production [4].

Core Viewpoint - Xinchen Power (01148.HK) is acquiring a 53% stake in AVIC Lantian Equipment Manufacturing Co., Ltd. for up to RMB 147.1 million, with plans to increase its stake to approximately 60% after a subsequent capital injection of USD 5 million, aiming to enhance its market position in the automotive and machinery sectors [1][3]. Group 1: Acquisition Details - Xinchen Power's subsidiary, Mianyang Xinchen Power, will acquire the sale rights of AVIC Lantian Equipment Manufacturing for a maximum of RMB 147.1 million [1]. - After the completion of the share transfer, Mianyang Xinchen Power will hold a 53% stake in AVIC Lantian Equipment Manufacturing, which will become an indirect non-wholly owned subsidiary [1]. - Following the capital injection of USD 5 million, Xinchen Power's stake in AVIC Lantian Equipment Manufacturing is expected to increase to approximately 60% [1]. Group 2: Business Strategy and Benefits - The acquisition aligns with Xinchen Power's strategy to integrate complementary businesses for growth, particularly in the automotive engine and component manufacturing sector [3]. - The company anticipates that the acquisition will enhance operational integration, diversify its product range, and improve its market position in the engine and component industry [3]. - Expected benefits from the acquisition include an expanded customer base, increased market share, cost savings, operational efficiency, and future business development potential [3].

Core Viewpoint - New Morning Power (01148) has entered into an equity acquisition agreement to purchase a 53% stake in AVIC Lantian Equipment for approximately RMB 147 million, along with a capital injection of USD 5 million post-acquisition, which will increase its ownership to about 60% [1][2] Group 1: Acquisition Details - The buyer, Mianyang New Morning Power, is a wholly-owned subsidiary of New Morning Power, and the seller is Shanxi Lantian Industrial Group [1] - The target company, AVIC Lantian Equipment, is primarily engaged in the manufacturing of vehicles, special equipment, and mining machinery, as well as automotive parts and industrial robots [1] Group 2: Strategic Rationale - The acquisition aligns with the company's strategy to achieve growth through the integration of complementary businesses with synergistic benefits [2] - The target company's strong track record in special and non-road vehicles is expected to enhance operational integration and diversify the product portfolio [2] - The acquisition will expand the company's product supply capabilities and market reach, particularly in the special and non-road vehicle markets [2] Group 3: Operational Benefits - The existing customer relationships and business network of the target company will immediately broaden the company's customer base [2] - The integration of administrative, R&D, procurement, and project management functions is anticipated to achieve economies of scale, reduce redundant costs, and improve overall operational efficiency [2] - The combined resources, expertise, and customer networks are expected to create a solid platform for exploring new business opportunities [2] Group 4: Market Position - The acquisition is expected to enhance the company's market position in the engine and components industry [2] - The company has applied to the Stock Exchange for the resumption of trading of its shares effective from October 16, 2025 [2]

Group 1 - The company, Xinchen Power (01148.HK), announced the acquisition of a 53% stake in AVIC Lantian Equipment Manufacturing Co., Ltd. for approximately RMB 147.1 million [1] - Following the completion of the share transfer, the buyer will invest USD 5 million in the target company, resulting in an ownership of about 60% [1] - The target company specializes in manufacturing vehicles, special equipment, mining machinery, automotive parts, industrial robots, and intelligent material handling equipment [1] Group 2 - The acquisition aligns with the company's strategy to enhance its core business through the integration of complementary operations [1] - The target company has a strong track record and reputation in the special and non-road vehicle sectors, which is expected to improve operational integration and diversify the product portfolio [1] - The expansion is anticipated to optimize business resources and promote sustainable growth, ultimately delivering additional value to shareholders [1] Group 3 - The company has applied to the Stock Exchange for the resumption of trading of its shares, effective from October 16, 2025 [2]

Group 1 - The company, Xinchen Power (01148), has entered into a share acquisition agreement to purchase 53% equity in the target company, AVIC Lantian Equipment, for approximately RMB 147 million, with an additional investment of USD 5 million post-acquisition [1][2] - Following the completion of the share transfer, the company will hold about 60% equity in the target company, which will become a subsidiary of Xinchen Power [1] - The target company specializes in manufacturing vehicles, special equipment, and mining machinery, as well as automotive parts and industrial robots [1] Group 2 - The acquisition aligns with the company's strategy to enhance growth through the integration of complementary businesses, leveraging the target company's strong reputation in the special and non-road vehicle sectors [2] - The acquisition is expected to expand the company's product offerings and market reach, particularly in the special and non-road vehicle markets, thereby creating additional value for shareholders [2] - The integration of administrative, R&D, procurement, and project management functions is anticipated to achieve economies of scale, reduce redundant costs, and improve overall operational efficiency [2]