CHONGQING M&E (02722) plans to sell a 51% equity stake in Chongqing Caff Automotive Brake & Steering System for RMB 89.7916 million.

CHONGQING M&E (02722) announced that on October 12, 2026, the Company entered into an equity transfer agreement with Silian Group (a wholly-owned subsidiary of the Company's controlling shareholder), pursuant to which the Company agreed to transfer, and Silian Group agreed to acquire, a 51% equity interest in the target company (Chongqing Caff Automotive Brake & Steering System Co., Ltd., a wholly-owned subsidiary of the Company), at a consideration of RMB 89.7916 million. The target company is principally engaged in the research, development and production of commercial vehicle steering tie rod (joint) assemblies and thrust rod assemblies, passenger vehicle suspension subframes and control arm assemblies, new energy battery boxes and structural parts for energy storage equipment, among others. As the target company's principal business is the manufacture and servicing of automotive parts, which has limited synergy with the Company's clean energy equipment and high-end intelligent equipment industries and makes it difficult to form upstream and downstream industrial support, the disposal will help the Company focus on its principal business and optimize its strategic layout. Therefore, upon completion of the disposal, the target company will no longer be consolidated into the Company's financial statements, which will help the Company optimize its industrial layout, concentrate its efforts and resources, deepen its development in its principal business, and promote the strengthening and improvement of its core industries. Meanwhile, Silian Group, which operates in the transportation equipment segment, focuses on three major business segments: "automotive basic components + automotive electronics + sensing and control," and is committed to building a leading enterprise in automotive components. Having Silian Group hold the controlling stake in the target company can further deepen the integration of the target company with Silian Group's internal customer and channel resources, create industrial chain synergy and economies of scale, bring better development opportunities to the target company, and enhance its market competitiveness and profitability.