On July 26, 2024, Qijia Holding (08395) released an announcement, stating that the company's indirectly wholly-owned subsidiary Hefei Qijia, the target company Anhui Zhongxian Smart Robot Co., Ltd., existing shareholders, and guarantors have signed an investment agreement. Accordingly, Hefei Qijia has conditionally agreed to acquire the equity of the target company for a delivery price of RMB 0.63 million. After the target company achieves the performance targets for the financial year ending on December 31, 2024, Hefei Qijia agrees to pay an additional price of about RMB 1.291 million or RMB 5.69 million.
According to the terms and conditions of the investment agreement, after the target company achieves the performance targets for the financial year ending on December 31, 2024, Hefei Qijia has the right to unilaterally decide whether to issue and settle additional consideration through the issuance of shares at the issue price of HKD 0.686 per share, based on the general authorization granted by the shareholders to the director.
The announcement stated that the group has been actively exploring opportunities for different investment projects and expanding the scope of its investments according to market conditions. The board of directors believes that investing in the target company will help the group further develop its core business of providing software and information technology services, and will also enable the group to seize the huge commercial opportunities brought about by the rapid growth of China's automation and related solutions demand.
In addition, the target company is a customer of Hefei Buyongren Visual Technology Co., Ltd., an indirect wholly-owned subsidiary of the group that provides software and information technology services. The acquisition will also help the group strengthen its relationship with its customers and obtain more sales and business opportunities.