INSIDE INFORMATIONUPDATES ON THE DISPOSAL OF EXISTING SHARESBY CONTROLLING SHAREHOLDER

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.Precision Tsugami (China) Corporation Limited 津上精密机床(中国)有限公司 (Incorporated in the Cayman Islands with limited liability) (Stock code: 1651) INSIDE INFORMATION UPDATES ON THE DISPOSAL OF EXISTING SHARES BY CONTROLLING SHAREHOLDER This announcement is issued by Precision Tsugami (China) Corporation Limited (the “Company”) pursuant to Rule 13.09(2)(a) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Listing Rules”) and Part XIVA of the Securities and Futures Ordinance. Reference is made to the announcement of the Company in relation to the proposed disposal of shares of the Company (the “Shares”) by the controlling shareholder dated 21 April 2023 (the “Announcement”).DISPOSAL OF EXISTING SHARES BY CONTROLLING SHAREHOLDER As disclosed in the Announcement Tsugami Corporation (“Tsugami Japan”) the Company’s controlling shareholder (as defined under the Listing Rules) intends to dispose a total of 22470000 Shares representing approximately 5.90% of the issued share capital of the Company as at the date of the Announcement. BOCI Asia Limited acts as the sole placing agent to Tsugami Japan in connection with the Disposal (as defined below).The board (the “Board”) of directors of the Company (the “Directors”) has been informed by Tsugami Japan that on 2 July 2024 Tsugami Japan has agreed to dispose of 22470000 Shares (the “Sale Shares”) (the “Disposal”) representing approximately 5.90% of the total issued share capital of the Company as at the date of this announcement.Tsugami Japan has further informed the Company that to its best knowledge the purchaser(s) of the Sale Shares are third parties independent of and not connected with the Company and its connected persons (as defined in the Listing Rules).Immediately after the Disposal the number of Shares held by Tsugami Japan decreased from 270000000 Shares (representing approximately 70.95% of the Company’s total issued share capital) to 247530000 Shares (representing approximately 65.04% of the Company’s total issued share capital) as at the date of this announcement. 1REASONS FOR AND BENEFITS OF THE DISPOSAL As disclosed in the Announcement the Board has been advised by Tsugami Japan that Tsugami Japan is aware of the market anticipation that Tsugami Japan should improve the circulation of the Shares by releasing its holding in the Shares. Accordingly Tsugami Japan decided to positively respond to such market anticipation via pursuing the Disposal. The Board welcomes the decision of Tsugami Japan.As stated in the Announcement the Board wishes to reiterate that Tsugami Japan has confirmed that it remains confident in the Group and the Board does not expect that the Disposal will have any material adverse effect on the operations of the Group.Shareholders and potential investors of the Company are reminded to exercise caution when dealing in the securities of the Company.By order of the Board Precision Tsugami (China) Corporation Limited Dr. Tang Donglei Chairman Chief Executive Officer and Executive Director Hong Kong 2 July 2024 As at the date of this announcement the executive directors of the Company are Dr. Tang Donglei and Dr. Li Zequn; the non-executive directors of the Company are Mr. Takao Nishijima Ms. Mami Matsushita and Mr. Kenji Yoneyama; and the independent non-executive directors of the Company are Dr. Satoshi Iwabuchi Dr. Huang Ping and Mr. Tam Kin Bor. 2