Changling Hydraulic(SH:605389) Zheng Quan Zhi Xing·2025-07-31 16:26Core Viewpoint - Jiangsu Changling Hydraulic Co., Ltd. is undergoing a change in control through a significant acquisition, with the funding sources and financial arrangements being closely scrutinized by regulatory authorities [1][2]. Funding Sources - The acquisition price is approximately 1.865 billion yuan, funded by the legal own funds of Chenglian Shuangying and self-raised funds from He Xin Ting Tao and He Xin Po Lang, totaling around 900 million yuan in own funds and 950 million yuan in self-raised funds [1][3]. - The self-raised funds include approximately 750 million yuan from merger loans and 200 million yuan from external borrowings, primarily from partner loans [1][2]. Partner Contributions - The acquisition platform consists of He Xin Ting Tao and He Xin Po Lang, with their capital contributions and partner structures undergoing changes to facilitate the acquisition [3][4]. - After the changes, He Xin Ting Tao's capital contribution will increase to 500 million yuan, while He Xin Po Lang's will rise to approximately 626.61 million yuan, with total contributions from partners amounting to about 1.126 billion yuan [4][5]. External Borrowings - Hu Kangqiao plans to secure approximately 117 million yuan in external borrowings to fulfill the capital contribution requirements for the acquisition platform, with specific lenders identified [11][12]. - The external borrowings are structured with clear repayment terms and do not involve any undisclosed interests or arrangements with the lenders [13][14]. Merger Loan Details - The acquisition will also involve a merger loan of about 750 million yuan, with banks currently in the process of approving the loan [15][16]. - The repayment structure for the merger loan includes annual payments of 1% for the first three years, followed by higher percentages in subsequent years, with a total loan term of seven years [26]. Financial Health of Partners - The financial health of Hu Kangqiao and Xu Lantao's other business assets is relatively small, which minimally impacts their ability to repay the merger loan and external borrowings [24]. - The core business, He Xin Interconnect Technology, has shown consistent revenue and profit growth, indicating a strong financial position to support the acquisition [26].