Announcement on Repurchase of Equity Investment
The company and all members of the board of directors guarantee the truthfulness, accuracy, and completeness of the information disclosed, and that there are no false records, misleading statements, or material omissions.
I. Overview of Equity Investment Repurchase
- On December 19, 2023, Suzhou Ruima Precision Industry Group Co., Ltd. (hereinafter referred to as the "Company") signed the "Agreement on the Purchase of Assets by Suzhou Ruima Precision Industry Group Co., Ltd." with Hongkong Dayan International Company Limited (hereinafter referred to as "Hongkong Dayan"), Asia Pacific Dayang Tech Limited (hereinafter referred to as "Asia Pacific Dayang"), Zhejiang Dazhi Import and Export Co., Ltd. (hereinafter referred to as "Zhejiang Dazhi Import and Export"), Zhejiang Dazhi Import and Export Co., Ltd. (hereinafter referred to as "Zhejiang Dazhi"), and Wang Shijun (collectively referred to as the "Counterparties"). The agreement stipulated that the Company would purchase 19.99% of the equity of Pneuride Limited held by Hongkong Dayan for RMB 39.98 million in cash. It was also agreed that if the target company failed to meet the agreed-upon operating conditions by December 31, 2024, the Counterparties would repurchase the 19.99% equity of Pneuride Limited purchased by the Company from Hongkong Dayan. For details, please refer to the "Announcement on the Acquisition of 19.99% Equity of Pneuride Limited by Cash" disclosed by the Company on the Juchao Information Network (www.cninfo.com.cn) on December 20, 2023.
Given that the equity repurchase conditions stipulated in the original contract have been met, the Counterparties have initiated the repurchase of the Company's equity investment. The Company signed the "Equity Repurchase Agreement for Pneuride Limited" with the Counterparties. Hongkong Dayan will repurchase the 19.99% equity of Pneuride Limited held by the Company for RMB 42.3048 million. Zhejiang Dazhi, based on its genuine intention, will assume joint and several liability for the payment obligation of RMB 42.3048 million owed by Hongkong Dayan for the equity repurchase. All parties agree that Zhejiang Dazhi will pledge its 14.5161% equity in Puraide Automotive Technology (Suzhou) Co., Ltd. to the Company as collateral for Zhejiang Dazhi's payment obligations. Upon completion of this transaction, the Company will no longer hold equity in Pneuride.
The price at which Hongkong Dayan repurchased the equity investment is based on the principal amount of RMB 39.98 million plus corresponding interest, as stipulated in the original contract. After friendly negotiation between both parties, the repurchase price for the Company's equity investment was determined to be RMB 42.3048 million.
- On June 11, 2026, the Company held the 33rd meeting of the third session of the Board of Directors, which reviewed and approved the "Proposal on the Repurchase of Equity Investment." It was agreed that Hongkong Dayan would repurchase the Company's 19.99% equity in Pneuride for RMB 42.3048 million. Upon completion of the transaction, the Company will no longer hold equity in Pneuride.
This transaction has been reviewed and approved by the Board of Directors and is subject to shareholder approval. As the Company holds a minority stake of 19.99% in Pneuride and has not had control over Pneuride before or after the transaction, it has been unable to audit Pneuride's financial statements for the most recent year and interim period. In accordance with Article 6.1.7 of the Shenzhen Stock Exchange Stock Listing Rules, an audit report is not required. This transaction does not constitute a major asset restructuring as defined by the "Administrative Measures for Major Asset Restructuring of Listed Companies" and does not require approval from relevant authorities.