Chongqing Zongshen Power Machinery Co.,Ltd agreed to acquire 60% stake in Dongguan Lithium Smart Energy Co., Ltd. from Gao Shaoheng, Xu Ting, Yang Guangliang, Huang Hai, and Zhang Huijin for CNY 324 million.

Chongqing Zongshen Power Machinery Co.,Ltd (SZSE:001696) agreed to acquire 60% stake in Dongguan Lithium Smart Energy Co., Ltd. from Gao Shaoheng, Xu Ting, Yang Guangliang, Huang Hai, and Zhang Huijin for CNY 324 million on May 24, 2023. The transaction was approved by Chongqing Machinery & Electric Co., Ltd. 9th Meeting of the 11th Directorate. For the year ended, April 30, 2023, Dongguan Lithium Smart Energy Co., Ltd. total asset is CNY 185.78 million and net asset is CNY 39 million.

Chongqing Zongshen Power Machinery Co.,Ltd. recently received performance compensation payments totaling CNY 22.2 million from the original shareholders of the performance commitment party Dongguan Lithium Smart Energy Co., Ltd. Chongqing Zongshen Power Machinery Co.,Ltd (SZSE:001696) has paid the second phase of the acquisition price of CNY 48.6 million to the original shareholders of Dongguan Lithium Wisdom. At this point, the second phase purchase price of 60% equity of Dongguan Lithium Wisdom has been paid.