(Parsdorf, December 13, 2024) As announced in August, Sinochem is in the process of converting existing shareholder loans into equity for China National Chemical Equipment (Luxembourg) S.á.r.l. (CNCE Lux), the parent company of the KraussMaffei Group. This transaction will benefit the KraussMaffei Group as well, as it will significantly improve the Group's capital structure and financial performance. The amount worth approximately € 478 mio opens up new investment opportunities for the group and ensures that we can position the company securely for the future. In addition, this step shows that Sinochem, as the owner, stands firmly behind the KraussMaffei Group and reaffirms its full support for the company.

The planned debt-to-equity conversion will lead to a change in ownership within the Sinochem group structure: to date, CNCE Lux has been wholly-owned by KraussMaffei Company Limited (KMCL), a company listed at the Shanghai Stock Exchange in China. This will change with the successful completion of the transaction. In the future, CNCE Lux will be 90,76% owned by CNCE Group (Hong Kong) Co., Limited, which is also a Sinochem company.

KraussMaffei Company Limited (KMCL) will continue to be listed at the Shanghai Stock Exchange. It will hold less than 10% of the shares in CNCE Lux / KraussMaffei Group. Therefore KMCL plans to change its name accordingly. After the project will be completed, CNCE Lux and thus the KraussMaffei Group based in Parsdorf will therefore no longer be included in the scope of consolidation of KMCL. Accordingly, the results of CNCE Lux and hence of the KraussMaffei Group will no longer be incorporated in the financial reporting of the listed company KMCL.

This will significantly reduce the mandatory financial reporting and administrative workload related to this disclosures of the KraussMaffei Group and will enable it to allocate more resources to its core business accordingly.

The announcement of KMCL on the Shanghai Stock Exchange on December 13 complies with Chinese Stock Exchange regulations and marks the beginning of the final phase of the planned transaction. All parties are currently working to complete the process in a timely manner and are confident that the transaction will be successfully finalized.