Gelonghui October 17?Datong Machinery (00118.HK) announced that on October 16, 2023, the seller (Bangji Industrial (Holdings) Co., Ltd., an indirect non-wholly owned subsidiary of the company) entered into a memorandum of understanding and an agreement for sale and purchase between (I) Purchaser I and (ii) Shenzhen Bangji and Purchaser II. II. In accordance with the Memorandum of understanding, the Sale and purchase Agreement I and the Sale and purchase Agreement II, which includes that the seller will sell and the Purchaser I and the Purchaser II will purchase Hong Kong Bangji shares and Shenzhen Bangji shares at a consideration of HK $1 and approximately RMB 137 million (price adjusted) respectively.
Buyer I (Anqi Circuit Board Co., Ltd.) is mainly engaged in printed circuit board trade, and buyer II (Heshan Amber Circuit Plate Factory Co., Ltd.) is mainly engaged in printed circuit board manufacturing. Mr. Aoda is the ultimate beneficial owner of Purchaser I and Purchaser II.
Hong Kong Bangji and Shenzhen Bangji are indirect non-wholly owned subsidiaries of the company. Hong Kong Bangji's main business is printed circuit board trade, while Shenzhen Bangji's main business is printed circuit board processing. In the face of a difficult and changing market environment, the disposal provides the Group with an opportunity to withdraw from the PCB manufacturing business and enables the Group to concentrate resources on other business sectors with more positive cash flow potential, thereby enhancing the Group's financial position.