SCHEDULE: Weichai Reduces Stake in Power Solutions Intl.

Weichai America Corp. has reduced its beneficial ownership in Power Solutions International, Inc. to 48.7% through recent open market share sales.

Summary

• Weichai America Corp., Weichai Power Co., Ltd., and Shandong Heavy Industry Group Co., Ltd. (the "Reporting Persons") filed Amendment No. 7 to their Schedule 13D regarding Power Solutions International, Inc. (the "Issuer").
• The amendment reports the sale of an aggregate of 251,983 shares of the Issuer's Common Stock by Weichai America Corp.
• These sales occurred in a series of open-market transactions through a broker-dealer from August 14, 2025, to August 15, 2025, pursuant to Rule 144.
• The sales resulted in a decrease of over one percent (1%) in the Reporting Persons' aggregate percentage ownership.
• Following these sales, the Reporting Persons beneficially own 11,211,841 shares of the Issuer's Common Stock.
• This beneficial ownership represents 48.7% of Power Solutions International, Inc.'s outstanding common stock.
• The beneficial ownership percentage is calculated based on 23,029,846 shares of Common Stock outstanding as of July 31, 2025, as reported in the Issuer's Quarterly Report on Form 10-Q filed on August 8, 2025.

Sentiment

Score: 4

Explanation: The reduction in a significant shareholder's stake, while a normal market activity, can be perceived as a slight negative signal regarding the seller's long-term commitment or outlook for the company.

Negatives

• A significant shareholder, Weichai America Corp., reduced its stake in Power Solutions International, Inc. by selling 251,983 shares.
• The sales decreased the Reporting Persons' aggregate beneficial ownership by over 1%.

Future Outlook

The filing indicates that Weichai America Corp. had previously filed a Form 144 notice on August 8, 2025, for the proposed sale of up to 1,150,000 shares of Common Stock.

Industry Context

NA

Stakeholder Impact

• Shareholders: Potential impact on share price due to the sale of a large block of shares by a significant beneficial owner, which could be interpreted as a shift in investor confidence or strategy.

Next Steps

• The Reporting Persons undertake to provide full information regarding the number of shares sold at each separate price for each transaction upon request by the SEC staff, the Issuer, or a security holder.

Key Dates

Recommendation

The filing primarily discloses a reduction in a significant beneficial ownership stake by Weichai America Corp. While this is a factual transaction, a decrease in a major shareholder's position, especially by over 1%, can sometimes signal a shift in their long-term strategy or outlook regarding the issuer. Without additional context on the issuer's financial performance or strategic direction, this specific filing suggests a 'hold' recommendation for investors to monitor further developments and assess the implications of this stake reduction on the company's future.

Keywords

Power Solutions International, PSI, Weichai America, Weichai Power, Shandong Heavy Industry Group, SHIG, Schedule 13D, beneficial ownership, share sale, Rule 144