Bingshan Refrigeration & Heat Transfer Technologies Co., Ltd. (SZSE:200530) agreed to acquire remaining 30% stake in Dalian Bingshan Air-Conditioning Equipment Company Limited from Showa Manufacturing Co.,Ltd. (FKSE:5953) for CNY 8.8 million on November 2, 2021. A contract is expected to be closed on November 15, 2021. After the transaction, Showa Manufacturing Co.,Ltd. will hold no stake in Dalian Bingshan Air-Conditioning Equipment Company.

Dalian Bingshan Air-Conditioning Equipment Company Limited reported net assets of CNY 63.87 million and total assets of CNY 120.23 million as at December 31, 2020. Dalian Bingshan Air-Conditioning Equipment Company Limited reported sales of CNY 110.78 million and operating profit of CNY 0.23 million in 2020. The Board of Directors of Showa Manufacturing Co.,Ltd. passed a resolution for the transaction on November 2, 2021 and the transaction is expected to close between December 2021 to January 2022.

The transfer of equity is expected to result in a loss for Showa Manufacturing Co.,Ltd. in the fiscal year ending March 2022.