Changyuan Donggu announced on the evening of September 7 that it plans to acquire 100% equity of Xiangyang Kanghao Electromechanical Engineering Co., Ltd. from Hubei Xinyuan Power Technology Group Co., Ltd. through share issuance, with the target valued at 5.01 billion yuan, constituting a major asset restructuring and related-party transaction. In this deal, Changyuan Donggu also plans to issue shares to no more than 35 specific investors to raise supporting funds of up to 2 billion yuan, to be used for projects such as expanding production of the target company's heat exchange systems. The target company, Kanghao Electromechanical, is mainly engaged in heat exchange systems and power unit business. Its revenue in the most recent year was 1.446 billion yuan, accounting for 64.05% of the listed company's revenue in the same period, and its net profit attributable to the parent was 300 million yuan, accounting for 77.08% of the listed company's net profit attributable to the parent in the same period. After the transaction is completed, the listed company's pro forma revenue is expected to reach 3.7 billion yuan, an increase of 64.04% compared with before the transaction, and pro forma net profit attributable to the parent is expected to reach 689 million yuan, an increase of 77.09%, with basic earnings per share enhanced and control unchanged.
Xiangyang Changyuan Donggu Industry Co LtdChangyuan Donggu plans to acquire 100% of Kanghao Electromechanical for 5.01 billion yuan via share issuance, a major asset restructuring that boosts pro forma revenue and net profit.
Kanghao Electromechanical is the acquisition target, being sold for 5.01 billion yuan and contributing 64% of revenue and 77% of net profit to the listed company.
Hubei Xinyuan Power Technology Group is the seller of Kanghao Electromechanical's 100% equity in this related-party restructuring, but the article gives no detail on the impact to it.
