Chongqing Machinery & Electric Co., Ltd. announced that The joint venture contract entered into in 1995 in relation to Chongqing Cummins Engine Company Limited ("CCEC"), a joint venture of the Company, will expire in 2025. In order to promote long-term and sustainable development of CCEC, upon friendly negotiation between the Company and Cummins (China) Investment Co., Ltd. both parties reached an agreement on major issues involved in the continuation of the joint venture, and recently entered into the revised and restated Joint Venture Contract, articles of association and related ancillary agreement. The Agreement mainly includes: to extend the joint venture period to 2040; to keep the shareholding ratio and dividend ratio of both parties unchanged; to make necessary optimizations of the corporate governance structure of CCEC according to the latest requirements of the Foreign Investment Law of the People's Republic of China, Company Law of the People's Republic of China and other laws and regulations, and based on the principle of reciprocity; and to introduce new resources into CCEC. Based on the strategic partnership of deep mutual trust established through cooperation for nearly 30 years, both parties conducted extensive and in-depth discussions and planning on the future of CCEC in the spirit of "respecting history, cooperating for win-win results, and creating the future". Both parties will continue to cooperate sincerely; continue to introduce new resources such as new products, new projects and new businesses into CCEC; jointly promote CCEC to become a
competitive and independent enterprise in the global market; continue to create excellent investment returns for both shareholders; and create good and sustainable value for other stakeholders.