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), 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]