Gelonghui, January 18, 丨 Tailin Science and Technology (06193.HK) announced that on January 18, 2024, the buyer Shanghai Yuanxintai Investment Management Co., Ltd. (an indirect wholly-owned subsidiary of the company), the seller Taizhou Jingyi Grand Technology Co., Ltd., the controller of the target company and the target company entered into a sales agreement. According to this, the seller conditionally agreed to sell and the buyer conditionally agreed to purchase the target shares, accounting for 5% of the issued share capital of the target company Zhejiang Erge Technology Co., Ltd., at a cost of RMB 15.1075 million.
The target company is a company limited by shares established in China. Its shares were listed at the basic level of the National Equity Transfer System (stock code: 832208) and terminated on December 28, 2023. It is mainly engaged in research and development, production and sales of cooling systems for renewable energy generation, electricity production, and transmission and other equipment.
The company has been searching for suitable opportunities to use its cash surpluses to generate risk-adjusted returns for shareholders. In particular, as a strategic investor, the Group intends to enter the high-end manufacturing industry of the target company and obtain higher expected returns driven by its technological progress. The target company is a deep-rooted supplier of high-quality cooling systems. Its products are used in (among others) renewable energy power generation projects in China, including the Yangtze River Three Gorges Dam and Gezhou Dam.
The directors believe that with the Group's rich experience in operation and financial management as a listed company and the growing business prospects of the renewable energy power generation industry related to the target company's main business, the acquisition will help promote the sustainable long-term development of the target company, and enable the Group, as an investor in the target company, to diversify its business portfolio and expand its revenue sources, benefiting the company and shareholders as a whole.