Tianshui Xinghuo Machine Tool Co., Ltd. completed the acquisition of Qinghai Qingzhong Machine Tool Manufacturing Co., Ltd. from QingHaiHuaDing Industrial CO.,LTD..
December 19, 2022
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Tianshui Xinghuo Machine Tool Co., Ltd. signed an Equity Transfer Agreement to acquire Qinghai Qingzhong Machine Tool Manufacturing Co., Ltd. from QingHaiHuaDing Industrial CO.,LTD. (SHSE:600243) for CNY 110 million on September 28, 2021. The transferee agrees to pay CNY 0.1 billion in cash and CNY 31.1 million including tax for some machinery and equipment of the target company (the original value of the equipment is CNY 60.1568 million and the net value is CNY 27.52 million, part of the inventory of the target company's goods including tax price 23.46 million to offset the equity transfer payment and creditor's rights. The remaining debts owed by the target company to the transferor of CNY 14.6 million shall be settled in cash by the transferee within six months after the signing of this agreement. QingHaiHuaDing Industrial has received CNY 15 million. Tianshui Xinghuo Machine Tool shall pay CNY 15 million before April 15, 2022, CNY 43.51 million before June 30, 2022, and the remaining amount before December 31, 2022. QingHaiHuaDing will assist in completion of equity transfer after receiving the equity payment for 51% stake. The current production base of Qingzhong Machine Tool will also be relocated to Tianshui City. Qinghai Qingzhong Machine Tool Manufacturing Co., Ltd. reported Total assets of CNY 216.7093 million and net assets of CNY 94.838 million for April 2021. This transaction has been reviewed and approved at the 29th meeting of QingHaiHuaDing Industrial CO.,LTD. seventh board of directors. There is no need to submit it to the shareholders meeting for deliberation.
Tianshui Xinghuo Machine Tool Co., Ltd. completed the acquisition of Qinghai Qingzhong Machine Tool Manufacturing Co., Ltd. from QingHaiHuaDing Industrial CO.,LTD. (SHSE:600243) on December 20, 2022.
QingHai HuaDing Industrial Co Ltd is a China-based company principally engaged in the manufacturer and sales of mechanical products. The Company's main products consist of machine tools, food processing machines, elevator components, gearboxes, lighting equipment, hotel equipment and others. It is also engaged in the provision of food and medical services. Its products are applied in metallurgy, ship, property development and food manufacturing industries, among others. The Company distributes its products primarily in domestic markets, with South China and Northeast China as its major markets.