Harbin Electric Company Limited (SEHK:1133) entered into Equity Transfer Agreements to acquire remaining 10.37% stake in Harbin Electric Machinery Company Limited from China Huarong Asset Management Co., Ltd. (SEHK:2799) for approximately CNY 270 million on November 28, 2019. As per terms of agreement, consideration will be in cash. In related transactions, Harbin Electric Company Limited entered into two agreements to acquire an additional 5.2% stake in Harbin Boiler Co., Ltd. for approximately CNY 150 million and 26.96% stake in Harbin Steam Turbine Works Co., Ltd for CNY 7.2 million.

Before entering into agreements, Harbin Electric Company Limited has paid CNY 21.64 million as part of combined consideration and remaining shall be payable within five working days after entering into agreements. Upon the completion of the equity transfer, the Company will hold 100% in Harbin Electric Machinery Company Limited. For the year ended December 31, 2019, Harbin Electric Machinery Company Limited reported total assets of CNY 11.7 billion and profit after tax of CNY 28.6 million.

Completion of the equity transfer shall take place upon completion of the registration procedures for the change in shareholding of the target equity. The Board of Directors of Harbin Electric Company Limited has approved the acquisition. Completion of the equity transfer shall take place upon completion of the registration procedures for the change in shareholding of Harbin Electric Machinery Co., Ltd., Harbin Boiler Co., Ltd. and Harbin Steam Turbine Works Co., Ltd.