Economic Observation Network Chongqing Electromechanical has received capital increase from its parent company to hold a subsidiary, and plans to distribute the final dividend for the year 2025. It will also participate in the West China International Fair with products from multiple fields and receive an institutional coverage rating for the first time.

Subsidiary Development:
On May 22, 2026, the company announced that its parent company, Chongqing Electromechanical Holdings Group, increased its capital to its subsidiary, Chongqing Chengfei New Materials, with a cash injection of 270 million yuan After the capital increase is completed, the total shareholding ratio of the company has decreased from approximately 98.42% to approximately 78.5096%. The target company remains a controlling subsidiary and is included in the consolidated financial statements This transaction constitutes a related party transaction that requires disclosure, and the relevant circular is expected to be sent to shareholders on June 4, 2026 。

Performance and business situation:
The final dividend for the year 2025 of the company is 0.055 yuan per share, which has been recommended by the board of directors The proposal will seek approval at the annual general meeting of shareholders on June 25, 2026, with a net date of June 29, 2026. The dividend is expected to be distributed on August 7, 2026 。

Brand marketing activities:
At the 8th West China International Fair held from May 21 to 24, 2026, the company showcased its hardcore technology products covering multiple high prosperity tracks such as nuclear power, offshore engineering, wind power, and hydrogen energy 。

Institutional perspective:
Guotai Haitong Securities released a research report on May 7, 2026, covering Chongqing Electromechanical for the first time and giving it an "increase in holdings" rating, with a target price of HKD 4.12 The report points out that the diesel engine business of its joint venture company Chongqing Cummins benefits from the global demand for data center construction, while the ultra-high voltage transformer business of its joint venture company Chongqing Hitachi Energy has strong orders 。

The above content is based on publicly available information and does not constitute investment advice.