Withdrawing from the heavy truck market, Jiangling plans to sell 100% equity of Jiangling Heavy Truck

A few days ago, Jiangling Motors put up a sale of equity interests in its subsidiaries.

JMC plans to sell the company's wholly-owned subsidiary Jiangling Heavy Duty Truck Co., Ltd. ("JMC") for a price of no less than RMB 764 million through a public listing through Shanxi Property Rights Exchange Market Co., Ltd. 100% equity.

The proposal to sell the subsidiary’s equity has been reviewed and approved by the company’s written board of directors held from April 30 to May 6, 2021. According to the relevant provisions of the "Shenzhen Stock Exchange Stock Listing Rules", the proposal to sell the equity of the subsidiary must still be submitted to the company's shareholders' meeting for review and approval. Afterwards, it is necessary to obtain approval from the state-owned assets management authority.

According to the announcement, the company has formulated and implemented the strategic vision of "becoming a leader in the light commercial vehicle industry and a provider of Ford's cost-effective products." This listing of 100% of Jiangling Heavy Duty Truck's equity is in line with The company's strategic direction is one of the measures to achieve the strategic vision.

In 2012, Jiangling Motors acquired all the equity interests in Taiyuan Changan Heavy Vehicle Co., Ltd. jointly held by China Ordnance Equipment Corporation and China Changan Automobile Group Co., Ltd. for a price of no more than 270 million yuan. ; In January 2013, after completing the corresponding industrial and commercial registration changes, Taiyuan Changan Heavy Duty Truck Co., Ltd. changed its name to Jiangling Heavy Duty Truck Co., Ltd. and became a wholly-owned subsidiary of the company.

In August 2020, Jiangling Heavy Duty Truck Co., Ltd. was divided into the surviving company "Jiangling Heavy Duty Truck Co., Ltd." and the new spin-off company "Taiyuan Jiangling Power Co., Ltd." based on the complete vehicle and engine business. , before the split, the registered capital of Jiangling Heavy Duty Truck Co., Ltd. was RMB 28.2 million; after the split, the registered capital of Jiangling Heavy Duty Truck Co., Ltd. was changed to RMB 182 million, and the registered capital of Taiyuan Jiangling Power Co., Ltd. was RMB 100 million. .

In January 2021, the company increased its capital to Jiangling Heavy Duty Truck by RMB 1.142 billion. After the capital increase was completed, the registered capital of Jiangling Heavy Duty Truck increased to RMB 1.324 billion.