QINGLING MOTORS (01122.HK): to buy 30.43% of Isuzu (China) Engine
- The consideration is approximately RMB659,870,026.65; upon Completion the Company will hold 50% of IEC and exercise joint control with Isuzu, with IEC's results equity-accounted and not consolidated.
- As at 30 June 2026, IEC's unaudited net asset value was approximately RMB2,175.288 million; the approximately 30.43% interest was appraised at approximately RMB669,594,957.05 under the asset-based approach.
- IEC's profit before taxation was approximately RMB32.0 million in 2024 and RMB36.7 million in 2025, with profit after taxation of approximately RMB28.6 million and RMB33.3 million; 2025 operating income was approximately RMB881.4 million.
NewTimeSpace News: On 9 October 2026 (after trading hours), Qingling Motors Co., Ltd. (stock code: 01122) entered into a share transfer agreement with its controlling shareholder Qingling Group, under which the Company conditionally agreed to acquire approximately 30.43% of the equity interests in Isuzu (China) Engine Co., Ltd. (IEC) held by Qingling Group for a consideration of approximately RMB659,870,026.65.
According to the announcement, immediately following Completion the Company will hold 50% of the equity interests in IEC and exercise joint control over it together with Isuzu; IEC's financial results will be accounted for by the Company using the equity method and will not be consolidated into the Group's financial statements. Earlier, on 20 March 2026, the Company, Qingling Group, Isuzu and IEC entered into a targeted capital reduction agreement reducing Isuzu's targeted share capital by USD3,955,972, lowering IEC's registered share capital from USD324,260,000 to USD320,304,028 at a consideration of RMB26,484,338.95; their contribution ratios then changed from 50.61%/30.06%/19.33% to 50%/30.43%/19.57%.
As Qingling Group holds approximately 50.10% of the Company's entire issued share capital and is its controlling shareholder, the transaction constitutes a connected transaction; as all applicable percentage ratios exceed 5% and one of them exceeds 25% but all are below 100%, the Acquisition also constitutes a major transaction subject to announcement, circular and Independent Shareholders' approval requirements. As at 30 June 2026, IEC's unaudited net asset value was approximately RMB2,175.288 million; the fair value of the approximately 30.43% equity interest, assessed under the asset-based approach as at the Valuation Benchmark Date, was approximately RMB669,594,957.05; profit before taxation was approximately RMB32.0 million in 2024 and RMB36.7 million in 2025. The Company expects to despatch the circular on or before 15 November 2026.
