Shanxi Taigang Stainless Steel Co., Ltd. (SZSE:000825) intends to acquire 20% stake in Taiyuan Heavy Industry Railway Transit Equipment Co., Ltd. from Taiyuan Heavy Industry Co., Ltd. (SHSE:600169) for approximately CNY 550 million on February 3, 2021. Post completion, Taiyuan Heavy Industry Co., Ltd. will still hold 80% of the equity in the target company and is the company's controlling shareholder. About the 20% stake in Taiyuan Heavy Industry Railway Transit Equipment Co., Ltd., the company needs to pay the equity transfer price in full in one lump sum within 15 working days from the effective date of the agreement.

Within 15 working days after payment shall complete the procedures of industrial and commercial change registration. Taiyuan Heavy Industry Railway Transit Equipment Co., Ltd. reported total assets of CNY 54.7 million, total liabilities of CNY 31.8 million and net assets of CNY 22.9 million as of September 30, 2020. This transaction must be submitted to the Taiyuan Heavy Industry Co., Ltd.'s general meeting of shareholders for review and approval.

On February 19, 2021, shareholders of Taiyuan Heavy Industry approved the transaction.