Key Highlights

• Prinx Chengshan Holdings Limited, a Hong Kong-listed company, announced that its indirect wholly-owned subsidiary, Prinx Tire (Malaysia) SDN. BHD, entered into two major purchase contracts with Qingdao MESNAC Machinery and Electric Engineering Co., Ltd. (“Vendor”) for new equipment.
• The total consideration for these contracts is RMB86,958,000, with payment terms structured in installments according to contract progress. Final payment will be made after a one-year warranty period.
• These contracts, together with previous purchase contracts entered between December 2025 and March 2026, involve an aggregate equipment investment of RMB284,088,000 for Malaysia’s production base.
• The Vendor is a PRC company specializing in rubber processing equipment, ultimately owned by MESNAC CO., LTD., a Shenzhen-listed entity.
• The contracts collectively constitute a “discloseable transaction” under Hong Kong Listing Rules, as the applicable percentage ratios exceed 5% but are less than 25%.

Detailed Overview of the Transaction

On April 30, 2026, Prinx Malaysia signed two purchase contracts for advanced tire production equipment:

• Purchase Contract 1: All-steel tire 65-Inch Hydraulic Curing Press, valued at RMB52,760,000.
• Purchase Contract 2: Semi-steel tire 48-Inch Hydraulic Curing Press, valued at RMB34,198,000.

Payment will be made in several installments as contract milestones are met, with the final installment due after a one-year warranty period.

Previous Equipment Purchases

Prinx Malaysia previously entered into multiple purchase contracts with MESNAC between December 2025 and March 2026 for semi-steel and all-steel tire production line equipment and tire building machines. The total value of these prior contracts was RMB197,130,000.

The terms of these previous contracts are substantially similar to the latest ones, differing mainly in payment structure and the number of machines purchased.

Aggregate Investment and Funding

The combined contract sum for all equipment purchases related to the Malaysia production base now stands at RMB284,088,000. This substantial investment is being financed entirely using the Group’s internal resources.

The contract prices were determined through a competitive tendering process and arm’s length negotiations, ensuring fairness and commercial reasonableness.

Strategic Significance and Potential Impact on Shareholders

• Expansion in Malaysia: The equipment procurement is part of a broader strategy to construct and develop a new tire production base in Malaysia, aiming to expand the Group’s global business operations and increase overseas manufacturing capacity.
• Future Contracts: The company is actively continuing plant construction and expects to sign a further purchase contract with the same vendor, valued at approximately RMB100 million, in or around May 2026. This indicates ongoing capital expenditure and a commitment to international growth.
• Listing Rules Compliance: As additional contracts may be signed, the company will comply with Hong Kong Listing Rules as appropriate, which could result in further announcements and disclosure obligations.
• Shareholder Interests: The Board, including independent non-executive directors, considers all terms fair, reasonable, and in the best interests of shareholders and the Group as a whole.

Potential Price Sensitive Information

The significant capital investment and expansion in Malaysia could impact Prinx Chengshan Holdings’ financial profile and future earnings potential. Investors should note:

• Large-scale, ongoing investment in international manufacturing capacity may affect cash flow and capital structure.
• Successful commissioning of the Malaysia production base could enhance global competitiveness and revenue streams.
• Further equipment purchases may trigger additional regulatory disclosures, potentially impacting share price depending on scale and terms.
• The Vendor is wholly independent and no related party or conflict-of-interest issues are involved.

Company and Vendor Information

• Prinx Tire (Malaysia) SDN. BHD: Incorporated in Malaysia in December 2024, wholly owned by Prinx Chengshan Holdings Limited, primarily engaged in tire manufacturing and trading.
• Vendor: Qingdao MESNAC Machinery and Electric Engineering Co., Ltd., a PRC company specializing in rubber processing equipment, owned by MESNAC CO., LTD. (Shenzhen Stock Exchange: 002073).

Board Composition

• Chairman: Che Hongzhi
• Executive Directors: Che Baozhen, Shi Futao, Jiang Xizhou
• Non-Executive Directors: Che Hongzhi, Wang Ning, Shao Quanfeng
• Independent Non-Executive Directors: Jin Qingjun, Wang Chuansheng, Chan Chi Fung, Leo

Conclusion

The disclosed equipment purchases mark a key milestone for Prinx Chengshan Holdings’ overseas expansion. The substantial investment in Malaysia signals long-term growth ambitions and may influence the company’s valuation and share price, especially as additional contracts are anticipated. Investors should monitor future announcements for further developments concerning the Malaysia production base.

Disclaimer: This article is for information purposes only and does not constitute investment advice or recommendations. Investors should conduct their own research and consult professional advisors before making investment decisions. The information is based on company announcements as of April 30, 2026, and may be subject to change.

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