Shandong Jiangquan Industry Co.,Ltd cancelled the acquisition of 10% stake in Beijing Xinhuo Technology Co., Ltd. from AVCON Information Technology Co., Ltd..
September 26, 2021
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Shandong Jiangquan Industry Co.,Ltd (SHSE:600212) signed Framework Agreement to acquire 10% stake in Beijing Xinhuo Technology Co., Ltd. from AVCON Information Technology Co., Ltd. (SZSE:300074) for CNY 33 million on January 4, 2021. Shandong Jiangquan Industry Co.,Ltd (SHSE:600212) signed Share Transfer Agreement to acquire 10% stake in Beijing Xinhuo Technology Co., Ltd. from AVCON Information Technology Co., Ltd. (SZSE:300074) on March 3, 2021. Shandong Jiangquan Industry Co.,Ltd (SHSE:600212) signed supplemental agreement to acquire 10% stake in Beijing Xinhuo Technology Co., Ltd. from AVCON Information Technology Co., Ltd. (SZSE:300074) on March 3, 2021. In a related transaction, Shandong Jiangquan Industry Co.,Ltd (SHSE:600212) signed an agreement to acquire remaining 90% Beijing Xinhuo Technology Co., Ltd. from others. After negotiation between the two parties, the initial valuation of Xinhuo Technology is CNY 330 million, and the final valuation of Xinhuo Technology will be determined based on the due diligence of the intermediary team hired by Shandong Jiangquan Industry and the evaluation results determined by the evaluation report issued by the asset evaluation agency. The consideration will be paid in cash. Shandong Jiangquan Industry pays the equity transfer consideration under this agreement from the funds raised by proposed non-public issuance of stocks. Beijing Xinhuo Technology generated the revenue of CNY 39.9 million, operating profit of CNY 20.5 million, net profit of CNY 20.6 million, total assets of CNY 31.4 million and owners' equity of CNY 58.9 million for the year end December 31, 2020. The transaction is subject to approval of the Board of Directors and shareholders of Shandong Jiangquan Industry and China Securities Regulatory Commission. As of March 3, 2021, Board of Directors of Shandong Jiangquan approved the transaction.
Shandong Jiangquan Industry Co.,Ltd (SHSE:600212) cancelled the acquisition of 10% Beijing Xinhuo Technology Co., Ltd. from AVCON Information Technology Co., Ltd. (SZSE:300074) on September 27, 2021.
AVCON Information Technology Co.,Ltd. is a China-based company principally engaged in the research, development, design, distribution and technical service provision of audio and video communication products and image intelligent integration applications. The Company primarily provides intelligent multimedia communication solutions, including video conference system, emergency command system, intelligent city, online education, intelligent healthcare, video bank and video monitoring control system, among others. The Company is also involved in the development of related technology and the provision of after-sale services. The Company operates its business in domestic market.
Shandong Jiangquan Industry Co.,Ltd cancelled the acquisition of 10% stake in Beijing Xinhuo Technology Co., Ltd. from AVCON Information Technology Co., Ltd..