Zhitong Finance App News, Zhejiang Shanghai-Hangzhou (00576) announced that on March 29, 2024, Zhejiang Shangshang Securities, a non-wholly-owned subsidiary of the company, and seller 1 Chongqing International Trust Co., Ltd. signed the first share transfer agreement for the sale of 275 million shares (equivalent to 4.7170% of the target company's shares) at a cost of 735 million yuan (RMB, same below); and Tianjin Zhongxin Technology Development Co., Ltd. signed a second share transfer agreement with seller 2 Tianjin Zhongxin Technology Development Co., Ltd. to trade 275 million sales shares (equivalent to 4.7170% of the target company's shares). The cost was 735 million yuan; the third share transfer agreement was concluded with seller 3 Chongqing Jiahong Shengxin Trading Co., Ltd. to trade 220 million sales shares (equivalent to 3.7736% of the target company's shares); signed a fourth share transfer agreement with seller 4 Shenzhen Zhongjun Investment Co., Ltd. to trade 153 million sales shares (equivalent to 2.6289% of the target company's shares), at a cost of 410 million yuan; and the seller 5 Shenzhen Yuanwei Investment Co., Ltd. to trade 193 million sales shares (equivalent to the target company's shares) 3.3089%) Concluded a fifth equity transfer agreement at a cost of $516 million.
After completion, Zheshang Securities will hold 1,116 billion sales shares, equivalent to 19.1454% of the shares of the target company Guodu Securities Co., Ltd. From an accounting perspective, once such acquisitions are completed, the company will not include the target company's financial results in its financial statements.
The announcement stated that after thorough due diligence and careful consideration of the target company's data, including its business model, financial performance and business prospects, the directors are optimistic about the target company's prospects and believe that such acquisitions will provide the Group with good investment opportunities and can expand its investment portfolio through high-quality securities licenses. At the same time, through the synergy generated by these acquisitions, it is expected that the Group's overall competitiveness and profitability will be further enhanced. Zheshang Securities has a sound governance structure and a perfect compliance and risk control system, which helps target companies to strengthen their compliance and risk control systems, thereby strengthening the sustainable development and performance of target companies.