On December 29, Gelonghui Co., Ltd. (603790.SH) announced that in order to enhance the company's market competitiveness and enhance the company's additives business strength, the company plans to purchase 29% of the shares held by Zhendong Technology (hereinafter referred to as “Zhendong New Materials” or “Target Company”) for RMB 69 million. After the transaction is completed, the company will hold 80% of the shares in the target company, Zhendong Technology will hold 20% of the shares in the target company, and the target company will remain a holding subsidiary of the company.
The source of funding for this transaction is the company's own or self-raised capital. The transaction price was determined through negotiations between the two parties based on the asset evaluation report, and the parties signed the “Equity Transfer Agreement” on December 28, 2023.