Qingdao Huijintong Power Equipment Co.Ltd(603577) announcement: in order to solve the problem of horizontal competition between the company and its controlling shareholders, Qingdao Huadian, a wholly-owned subsidiary of the company, plans to acquire 80% equity of Chongqing Jiangdian Power Equipment Co., Ltd. (hereinafter referred to as “Chongqing Jiangdian”) held by the related party Hebei Jinxi section Steel Co., Ltd. in cash, with a transaction amount of 284 million yuan. Jinxi section steel is a wholly-owned subsidiary of Jinxi Co., Ltd., the controlling shareholder of the company.
The target company is located in Degan Industrial Park, Jiangjin District, Chongqing. It has the production capacity of UHV and below voltage levels of power towers, and has the qualification certificate of construction enterprises. Its main products are power towers, communication towers, smart light poles, etc., with an annual design production capacity of about 150000 tons. Jinxi section steel promises that the net profit of Chongqing Jiangdian in 2022, 2023 and 2024 will not be less than 32.4244 million yuan, 36.7852 million yuan and 42.4071 million yuan respectively, and the total net profit in the performance commitment period will not be less than 111.6167 million yuan.
