Changyuan Donggu announced on the evening of September 7 that it plans to purchase the 100% equity stake in Xiangyang Kanghao Electromechanical Engineering Co., Ltd. held by Hubei Xinyuan Power Technology Group Co., Ltd. through a share issuance, with a transaction price of 5.01 billion yuan, and simultaneously raise supporting funds of no more than 2 billion yuan. This transaction constitutes a related-party transaction and a major asset restructuring, but does not constitute a restructuring listing. The target company, Kanghao Electromechanical, is mainly engaged in heat exchange systems and power unit businesses, with an appraisal appreciation rate of 237.67%. After the transaction is completed, Changyuan Donggu's business will extend downstream in the industrial chain to heat exchange systems and other areas. It is expected that in 2025, operating revenue will increase from 2.255 billion yuan to 3.7 billion yuan, and net profit attributable to the parent company will increase from 389 million yuan to 689 million yuan. In the first half of the year, Changyuan Donggu achieved operating revenue of 1.014 billion yuan, a year-on-year decrease of 2.03%, and net profit attributable to the parent company of 167 million yuan, a year-on-year increase of 1.66%.
Xiangyang Changyuan Donggu Industry Co LtdChangyuan Donggu plans to acquire 100% of Kanghao Electromechanical for 5.01 billion yuan via share issuance plus 2 billion yuan supporting fundraising, a major asset restructuring expected to lift 2025 revenue to 3.7 billion yuan and net profit to 689 million yuan.
Kanghao Electromechanical is the target being acquired at a 237.67% appraisal appreciation rate, with its heat exchange systems and power unit businesses to be folded into Changyuan Donggu.
Hubei Xinyuan Power Technology Group is the seller of the 100% Kanghao Electromechanical stake in this related-party transaction; impact on the seller is unclear.
