Core Viewpoint - Xinchen Power (01148.HK) is acquiring a 53% stake in AVIC Lantian Equipment Manufacturing Co., Ltd. for up to RMB 147.1 million, with plans to increase its stake to approximately 60% after a subsequent capital injection of USD 5 million, aiming to enhance its market position in the automotive and machinery sectors [1][3]. Group 1: Acquisition Details - Xinchen Power's subsidiary, Mianyang Xinchen Power, will acquire the sale rights of AVIC Lantian Equipment Manufacturing for a maximum of RMB 147.1 million [1]. - After the completion of the share transfer, Mianyang Xinchen Power will hold a 53% stake in AVIC Lantian Equipment Manufacturing, which will become an indirect non-wholly owned subsidiary [1]. - Following the capital injection of USD 5 million, Xinchen Power's stake in AVIC Lantian Equipment Manufacturing is expected to increase to approximately 60% [1]. Group 2: Business Strategy and Benefits - The acquisition aligns with Xinchen Power's strategy to integrate complementary businesses for growth, particularly in the automotive engine and component manufacturing sector [3]. - The company anticipates that the acquisition will enhance operational integration, diversify its product range, and improve its market position in the engine and component industry [3]. - Expected benefits from the acquisition include an expanded customer base, increased market share, cost savings, operational efficiency, and future business development potential [3].
新晨动力，拟斥1.83亿收购及增资中航兰田装备制造