Weichai Power (HKG:2338) announced that it has entered into an agreement with several companies in relation to subscription of registered capital in target company Shandong Zhonggong Group Finance Co., Ltd. in an aggregate amount of RMB1 billion, comprising RMB350 million by Shandong Zhonggong, RMB200 million by each of Weichai Power, Weichai Heavy-duty Machinery and Shantui Engineering, and RMB50 million by Jingu Trust.

The principal businesses of the target company shall include the provision of capital settlement, credit services, services relating to bills, the relevant intermediary services and other services approved by China Banking Regulatory Commission to the members of the Shandong Zhonggong group.

Weichai Heavy-duty Machinery is held as to 30.59% by Weichai Holdings, which is a holder of 16.83% of the issued share capital of Weichai Power and a wholly-owned subsidiary of Shandong Zhonggong. Accordingly, Weichai Holdings is a connected person of Weichai Power and therefore, Shandong Zhonggong, being the holding company of Weichai Holdings, and Weichai Heavy-duty Machinery, being an associate of Weichai Holdings, are also connected persons of Weichai Power.