Gelonghui October 30?CRRC Corporation (01766.HK) announced that on October 30th, the company's wholly-owned subsidiary, Beijing CRRC heavy Industry, as a seller, entered into an equity transfer contract with CRRC Science and Technology Park, a wholly-owned subsidiary of CRRC Group, as a buyer, pursuant to which Beijing CRRC heavy Industry agreed to sell and CRRC Science and Technology Park agreed to acquire the underlying equity interest at a consideration of approximately RMB 476 million. After the completion of the transaction, CRRC Science and Technology Park will hold a 51% stake in the time New Park, which will no longer be a subsidiary of the company.

Time New Park is a limited liability company registered in China on July 30, 2020 with a registered capital of RMB 921.6051 million, which was reorganized and established by Beijing CRRC heavy Industry in kind. As at the date of the announcement, time New Park is a wholly-owned subsidiary of Beijing CRRC heavy Industry. its main business includes property management, commercial housing leasing operation, market operation and management services (market land, occupation, sanitation, fire control, etc.), conference services and other business.

Beijing CRRC heavy Industry aims to optimize the enterprise structure and promote the transformation and upgrading of the industry through this transaction, so as to maximize the value of the company's resources in Beijing and maximize the company's interests. The funds obtained from this exchange will be used for the follow-up industrial upgrading and daily operation of Beijing CRRC heavy Industry, which will help stimulate the endogenous power of the enterprise and ensure the steady growth of the operating efficiency of Beijing CRRC heavy Industry and the company.

Beijing CRRC heavy Industry plans to transfer 51% of the shares in the time New Park. after the equity transfer, considering the influence of taxes and fees, the income related to the consolidated statement of Beijing CRRC heavy Industry is 690 million yuan. After the completion of this transaction, the company (through CRRC heavy Industry in Beijing) no longer has the control of the time New Park and no longer includes the time New Park in the consolidated statement.