Luxshare Precision Industry Co.Ltd(002475) announced that the company and Chery Group signed the strategic cooperation framework agreement on February 11, 2022, laying a strategic partnership for both sides. On the basis of this agreement, the company and Chery new energy intend to jointly establish a joint venture company, specializing in the R & D and manufacturing of new energy vehicles, providing cutting-edge R & D, design, mass production platform and access to the sea for Luxshare Precision Industry Co.Ltd(002475) auto core parts business, and committed to realizing the company’s medium and long-term goal of becoming a leading manufacturer of auto parts tier 1.
On the day of signing the agreement, the controlling shareholder of the company, Lixun Co., Ltd. signed the equity transfer framework agreement with Qingdao Wudaokou. The agreement agreed that Lixun Co., Ltd. would purchase 19.88% equity of Chery holdings, 7.87% equity of Chery shares and 6.24% equity of Chery new energy held by Qingdao Wudaokou for RMB 10.054 billion. After the transaction was completed, Lixun Co., Ltd. would not hold Chery Chery shares and Chery new energy constitute control. Before the signing of the equity transfer framework agreement, Qingdao Wudaokou held 46.77% equity of Chery holdings and was the largest shareholder of Chery holdings.
The company also announced that the company plans to acquire about 74.67% shares of convergence technology Co., Ltd., a company listed on the main board of the Hong Kong stock exchange, for HK $0.80 per share through its overseas wholly-owned subsidiary Luxshare Precision Industry Co.Ltd(002475) Co., Ltd., with a total consideration of HK $1104000000.00. Convergence technology is a supplier of customized wire interconnection solutions.
