Shenzhen H&T Intelligent Control Co., Ltd. signed an agreement to acquire a 80% stake in Zhejiang Chengchang Technology Co., Ltd. from Ding Wenheng, Hangzhou Xinhe Investment Partnership Enterprise (Limited Partnership), and Yu Faxin for approximately CNY 620 million.
February 21, 2018
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Shenzhen H&T Intelligent Control Co., Ltd. (SZSE:002402) signed an equity transfer framework agreement to acquire a 80% stake in Zhejiang Chengchang Technology Co., Ltd. on February 22, 2018. Shenzhen H&T Intelligent Control Co., Ltd. (SZSE:002402) signed an agreement to acquire a 80% stake in Zhejiang Chengchang Technology Co., Ltd. from Ding Wenheng, Hangzhou Xinhe Investment Partnership Enterprise (Limited Partnership), and Yu Faxin for approximately CNY 620 million on April 18, 2018. Under the terms, Shenzhen H&T Intelligent Control Co., Ltd. will use not less than approximately CNY 570 million not more than approximately CNY 620 million to purchase the stake. Ding Wenheng, Hangzhou Xinhe Investment Partnership Enterprise (Limited Partnership), and Yu Faxin will transfer 47.9%, 27.1%, and 5% stake respectively. Upon completion, Ding Wenheng will continue to hold 4% stake. The transaction will be funded from own funds. For the year ended December 31, 2017, Zhejiang Chengchang Technology Co., Ltd. reported total assets of CNY 105.9 million, net assets of CNY 84.98 million, revenue of CNY 60.4 million, and net profit of CNY 26.7 million.
The transaction is subject to Zhejiang Chengchang Technology Co., Ltd. obtaining approval from the relevant national authorities and shareholders' approval of Shenzhen H&T Intelligent Control Co., Ltd. As on May 3, 2018, National Defense Industry Bureau approved the transaction. On April 18, 2018, the Board of Shenzhen H&T Intelligent Control Co., Ltd. approved the transaction. On May 3, 2018, the transaction was approved by the National Science and Technology Bureau of the People's Republic of China. On May 14, 2018, the transaction was approved by the shareholders of Shenzhen H&T Intelligent Control Co., Ltd.
Zhejiang Chengchang Technology Co Ltd is a China-based company mainly engaged in the research and development, production, sales and technical services of microwave and millimeter wave analog phased array transmitter and receiver (T/R) chips. The Company mainly provides the market with a series of products and related technical solutions based on GaN, GaAs and silicon-based processes. The Company's products mainly include power amplifier chips, low noise amplifier chips, analog beamforming chips and passive components for phased arrays. The Company's products are used in detection, remote sensing, communications, navigation, electronic countermeasures and other fields. The Company operates its businesses primarily in the domestic market.
Shenzhen H&T Intelligent Control Co., Ltd. signed an agreement to acquire a 80% stake in Zhejiang Chengchang Technology Co., Ltd. from Ding Wenheng, Hangzhou Xinhe Investment Partnership Enterprise (Limited Partnership), and Yu Faxin for approximately CNY 620 million.