Qingling Auto Co., Ltd. (01122) signed a capital reduction agreement to wholly own Qingling Mold

According to Zhitong Finance App, Qingling Auto Co., Ltd. (01122) announced that on October 16, 2026 (after the trading period), the company, Qingling Group and Qingling Mold signed a capital reduction agreement. According to this, Qingling Group plans to reduce the capital of about 49.4% of its shares in Qingling Mold, at a cost of about 202 million yuan. Thus, the registered capital of Qingling Mold will be reduced from about 309 million yuan to about 156 million yuan, and the corresponding reduction in registered capital is about 153 million yuan. After the capital reduction is completed, the company's shareholding ratio of Qingling Mold will increase from about 50.6% to 100%. Qingling Mold will remain a subsidiary of the company, and its financial results will continue to be incorporated into the Group's comprehensive financial statements.

Overall, Qingling Mold has been deeply involved in the mold manufacturing circuit for many years. It has a solid operating base, high asset structure, low balance ratio, abundant monetary capital, good cash flow, strong business resilience and resilience to risks, and has a stable profit level and mature market support system. After the capital reduction is completed, the group will hold 100% of Qingling Mold's shares and enjoy the full operating income of Qingling Mold, which can effectively optimize the company's financial structure, enhance overall business performance, and enable the company's long-term high-quality development.