Zongshen Power has disclosed progress on a major asset swap, planning to exchange the assets and liabilities related to its motorcycle engine business for the assets and liabilities related to the general machinery business held by Loncin General, with any difference settled in cash. The transaction does not involve the issuance of shares and is expected to constitute a major asset restructuring, without changing the company's controlling shareholder or actual controller. The counterparty, Loncin General, is a company controlled by Zuo Zongshen, the actual controller of Zongshen Power, making this a related-party transaction. At present, key elements such as the scope of the underlying assets and the transaction price have not been finalized, no agreements have been signed between the parties, and the plan still requires further analysis, communication, and negotiation. The company has disclosed progress multiple times since February 14, 2026, with this being the seventh progress announcement, and it cautions that the transaction is still in the planning stage and that related matters are subject to uncertainty.
Chongqing Zongshen Power Machinery Co LtdZongshen Power plans a major asset restructuring to swap motorcycle engine business for general machinery, but terms are undecided and uncertain.
Loncin Motor Co Ltd