Acquisition of Shares and Dilution of Interest in Subsidiary

The Board of Directors of Hong Leong Asia Ltd. (the “Company”) wishes to announce the following:

1. Acquisition of Shares

Guangxi Yuchai Machinery Monopoly Development Co., Ltd (“YMMC”), a subsidiary of New York Stock
Exchange listed China Yuchai International Limited, which in turn is a subsidiary of the Company, has
together with its wholly-owned subsidiary, Hangzhou Yuchai Machinery Monopoly Company Limited
(“Hangzhou Yuchai”), acquired the remaining 90% equity interests in Changchun Yuchai Marketing
Company Limited (“Changchun Yuchai”) (the “Purchase”), a 10%-owned company of YMMC, for an
aggregate consideration of RMB89,722.28. Following the Purchase, YMMC and Hangzhou Yuchai now hold
respectively 90% and 10% equity interests in Changchun Yuchai, thereby making the latter a wholly-owned
subsidiary of YMMC.

The consideration for the Purchase was arrived at on a “willing-buyer willing-seller” basis after taking into
account the independent valuation report on the assets of Changchun Yuchai prepared by Guangxi Equal
Certified Public Accountants, and commissioned by YMMC and the vendor. The consideration for the
Purchase was paid for in cash and funded through internal sources.


2. Dilution of Interest in Subsidiary

YMMC had disposed of 80,000 ordinary shares representing approximately 15% of the registered capital of
Shenyang Yuchai Marketing Company Limited (“Shenyang Yuchai”) to Shenyang You Bang Sheng Yu
Business Trading Co., Ltd. (“Shenyang You Bang”) for a cash consideration of RMB80,000 (the “Sale”) at
cost. Consequent thereto, YMMC’s equity interest in Shenyang Yuchai had been reduced from 100% to
85%.

Following the Sale, Shenyang Yuchai allotted 150,000 and 320,000 shares to YMMC and Shenyang You
Bang respectively for cash consideration of RMB150,000 and RMB320,000 respectively. Consequent upon
the said allotment, YMMC’s equity interest in Shenyang Yuchai has been reduced further from 85% to 60%
while the equity interest of Shenyang You Bang has increased from 15% to 40%.