On July 19th, GeLongHui announced that on July 19th, 2024, Xiangtan Yongda Machinery Manufacturing Co., Ltd. and Ge Yanming signed a "Cooperation Framework Agreement." The company plans to acquire 51% of the shares of Jiangsu Jinyuan High-end Equipment Co., Ltd. ("Jinyuan Equipment", the "Target Company") held by Ge Yanming or its designated party (hereinafter referred to as the "Transaction Counterparty") in cash (the "Transaction" referred to in this acquisition of shares).
The overall valuation of the target company corresponding to this transaction is based on the appraisal results determined by an appraisal institution with securities qualifications as of May 31, 2024, and finally determined after consultation and agreement by all parties.
The target company's products are the core components of gearboxes, widely used in multiple industries such as wind power, construction machinery, rail transit, and ocean engineering, and its main source of revenue comes from the wind power sector. As an important supplier of heavy-duty and high-speed gear forgings for wind power gearboxes for global leading companies such as NanGaoChi, ZF, Flender and Hangzhou Advance Gearbox Group, the target company has a high market share and a leading market position in the wind power gearbox industry.
After this transaction is completed, the company will fully leverage business synergy in terms of products, market expansion, and production technology, integrate high-quality customer resources in wind power generation, engineering lifting, and tunneling in their respective key industry areas and advantageous sales regions, and create a large, customized equipment metal structure and forging integrated leading enterprises.