Shanghai Kinlita Chemical Co., Ltd. signed an agreement to acquire 51% stake in Zhongke Shiyu Technology Co., Ltd. from Zhang Lin for CNY 17.2 million.
June 01, 2020
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Shanghai Kinlita Chemical Co., Ltd. (SZSE:300225) signed an agreement to acquire 51% stake in Zhongke Shiyu (Beijing) Technology Co., Ltd. from Zhang Lin for CNY 17.2 million on June 1, 2020. The purchase price will be paid in two installments. Within 3 working days after the entry into force of the agreement, Shanghai Kinlita Chemical Co., Ltd. will pay first installment of 20% of the consideration. After all the following conditions are fulfilled, Shanghai Kinlita Chemical Co., Ltd. shall pay the consideration of the second phase of equity transfer, within 5 working days from the date of receiving the aforementioned written notice, pay the remaining 80% of the equity transfer consideration, that is, CNY 13.8 million. For the year ended December 31, 2019, Zhongke Shiyu (Beijing) Technology Co., Ltd. reported total assets of CNY 11.6 million, total common equity of CNY 11.3 million, total revenues of CNY 7.6 million and net income of CNY 0.08 million. The shareholders of Zhongke Shiyu (Beijing) Technology Co., Ltd. agreed to modify the articles of association of Zhongke Shiyu (Beijing) Technology Co, and approved the Board of Directors of Zhongke Shiyu (Beijing) Technology Co. The number of members is 5, including 3 Directors appointed by Shanghai Kinlita Chemical Co., Ltd.; 2 supervisors, 1 of which is assigned by Shanghai Kinlita Chemical Co., Ltd.; approved Shanghai Kinlita Chemical Co., Ltd. has the right to appoint financial personnel to Zhongke Shiyu (Beijing) Technology Co., Ltd. The transaction is subject to the approval of the shareholders of Zhongke Shiyu (Beijing) Technology Co., Ltd. Shanghai Kinlita Chemical Co., Ltd. held an office meeting of the president on June 1, 2020, and approved the transaction.
Shanghai Kinlita Chemical Co., Ltd. is a China-based company principally engaged in the manufacture, processing and sales of coating products, solvents and additives, as well as the provision of related technical consulting and after-sales services. The Company's main products include cathodic electrophoretic coatings, topcoats, environmentally friendly and energy-saving materials and ceramic coatings. The Company's products are mainly used in automobiles, agricultural machinery, construction machinery, motorcycles, auto parts, light industrial parts and building curtain walls. The Company distributes its products in domestic market, with East China as its main market.
Shanghai Kinlita Chemical Co., Ltd. signed an agreement to acquire 51% stake in Zhongke Shiyu Technology Co., Ltd. from Zhang Lin for CNY 17.2 million.