On the evening of January 17, Zhejiang Weixing New Building Materials Co.Ltd(002372) announced that the acquisition of 100% equity of fast flow limited had been completed.
On October 27, 2021, Zhejiang Weixing New Building Materials Co.Ltd(002372) the 12th (Interim) meeting of the Fifth Board of directors deliberated and adopted the proposal on the proposed acquisition of 100% equity of fast flow limited, and agreed that the company passed the wholly-owned subsidiary vasen (Singapore) PTE. LTD。 (hereinafter referred to as “Singapore subsidiary”) purchased 100% equity of fast flow Limited (hereinafter referred to as “jetliu”) jointly held by Bequia Services Limited (actual controller Colin Bruce Thoms), Yap Kern Ling and Goh Chun hee with its own capital of S $17 million.
According to the announcement, Zhejiang Weixing New Building Materials Co.Ltd(002372) has obtained the enterprise overseas investment certificate issued by the Department of Commerce of Zhejiang Province, the notice on filing overseas investment projects approved by the development and Reform Commission of Zhejiang Province, completed the foreign exchange business registration with the Linhai branch of the State Administration of foreign exchange, and obtained the administrative approval and filing documents required for the implementation of the exchange. As of January 17, 2022, the relevant equity delivery conditions agreed in this transaction have been fully met. The Singapore subsidiary of the company has paid 70% of its cash purchase price to the counterparty according to the equity purchase agreement (the remaining payment will be paid on the 1st, 2nd and 3rd anniversary of the delivery date according to the agreement), and has obtained 100% equity of jieliu company. After that, the company will actively promote and complete relevant work after the closing in accordance with the equity acquisition agreement.
After the completion of the transaction, Zhejiang Weixing New Building Materials Co.Ltd(002372) obtained 100% equity of jieliu company through its Singapore subsidiary, and jieliu company became the holding subsidiary of Zhejiang Weixing New Building Materials Co.Ltd(002372) , which will be included in the scope of Zhejiang Weixing New Building Materials Co.Ltd(002372) consolidated financial statements in accordance with the relevant provisions of the accounting standards for business enterprises.
It is reported that jieliu company is an integrated system operator specializing in drainage system design and construction services. It is a leading drainage management expert in the Asia Pacific region, and has obvious synergy with Zhejiang Weixing New Building Materials Co.Ltd(002372) : first, jieliu company is a leading technology in the drainage field, has a high brand reputation and market influence, and has a strong competitive advantage in the water supply field, Acquire the water supply and drainage product chain that helps to improve Zhejiang Weixing New Building Materials Co.Ltd(002372) ; Second, jieliu company has excellent system integration design and R & D capability, which is of great significance to Zhejiang Weixing New Building Materials Co.Ltd(002372) improve system integration design and service capability and realize the innovation and upgrading of profit model; Third, jieliu company is headquartered in Singapore. Its business covers Singapore, Malaysia, Thailand, China, Indonesia, Australia and other countries and regions. It has strong brand influence and market competitiveness in Southeast Asia.
Zhejiang Weixing New Building Materials Co.Ltd(002372) said that through this acquisition, the company can effectively integrate the excellent system integration design ability of jieliu company with the company’s strong product manufacturing and marketing strength, optimize and strengthen the building drainage and sewage market, and further open the development space of the future drainage market, especially China’s high-end residential projects and large-scale public construction market; At the same time, further improve the company’s integrated system design and service capabilities, enhance core competitiveness, and accelerate the international strategic layout.
