Gelonghui, November 12, report丨Weichai Power (02338.HK) announced that on November 11, 2024, the existing shareholders of the Heavy Industry Financial Company (including the company, Shaanxi Fast Gear (a subsidiary with a 51% stake), Shandong Heavy Industry, Weichai Heavy Machinery, and Shantui Construction Machinery) along with Sinotruk (Hong Kong) signed a capital increase agreement with Heavy Industry Financial Company. According to this agreement, the existing shareholders of Heavy Industry Financial Company and Sinotruk (Hong Kong) each agree to inject a total of 5.57568 billion yuan into Heavy Industry Financial Company. The total amount of capital increase made by the group according to the agreement is 0.78408 billion yuan, of which 0.3375 billion yuan will be used to increase the registered capital of Heavy Industry Financial Company, and 0.44658 billion yuan will be used to increase the capital reserve of Heavy Industry Financial Company.
After completing the transaction proposed under the capital increase agreement, Sinotruk (Hong Kong) will become a new equity holder of Heavy Industry Financial Company, while the group's equity in Heavy Industry Financial Company will decrease from 37.50% to approximately 23.44%.
