Gelonghui November 17丨International Precision (00929.HK) announced that on November 17, 2023, the buyer (an indirect non-wholly owned subsidiary of the company, as the buyer) entered into a sales agreement with Seller A, Seller B, Seller C and Seller D respectively. According to Agreement A, the buyer agreed to purchase 75% of the shares of target company A Yutai Hydraulic Technology (Shanghai) Co., Ltd. from Seller A, Seller B and Seller C at a total cost of RMB 201,376,500. According to agreement B, the buyer agreed to purchase 22.5% of target company B, Wuhu Yingnuo Hydraulic Technology Co., Ltd. from Seller D, at a total cost of RMB 10,000,000.
As of the date of this announcement, Target Group is mainly engaged in the research, design, manufacture and sale of hydraulic valve components, modular hydraulic products and integrated hydraulic valve products, and technical services for the above products.
Target Group was founded in 2006 and has extensive experience in designing and manufacturing precision metal parts and hydraulic parts. Target Group's main business includes the development, design and manufacture of hydraulic valves, modular hydraulic products and hydraulic integrated valve group products, and the provision of various process solutions for customers from various industries such as construction machinery, agricultural machinery and industrial vehicles, including braking control, motion and load control, transmission control and load control. Target Group has a broad customer base in China, and its products can also be used in different scenarios, including construction machinery, agricultural machinery, industrial vehicles, and aerial work equipment.
The Group intends to continue to focus on and expand its main business of precision metal parts for a long time. In order to achieve further growth in its operating business, the directors believe it is important for the Group to continue to expand its product portfolio and customer base, which is conducive to enhancing the Group's core competitiveness and achieving long-term sustainable development. Considering that Target Group (i) has many years of experience in the design and manufacture of precision metal parts and hydraulic components; and (ii) has a broad customer base in China and covers many industries, the board believes that the acquisition will broaden the Group's revenue streams and expand its local Chinese customer base, thus driving its long-term growth. Therefore, the board of directors believes that the acquisition is in line with the Group's overall strategy and is conducive to the long-term business development of its precision metal parts business.