Luoyang Xinqianglian Slewing Bearing Co., Ltd. (SZSE:300850) agreed to acquire 51.145% stake in Luoyang Shengjiu Forging Co., Ltd. from Shenzhen Capital Group Manufacturing Transformation and Upgrading New Materials Fund (L.P.), Qingdao Chirui Investment Management Center (Limited Partnership), Qingdao Qiandao Ronghui Investment Management Center (Limited Partnership) and Fan Weihong for CNY 971.76 million on December 23, 2022. The consideration of CNY 242.94 million will be paid in cash and CNY 728.82 milion through issuance of shares. The number of shares to be issued for this asset acquisition is 15.62 million.

The company will issue A shares to no more than 35 investors to raise supporting funds of not more than CNY 350 million. The board of directors of Luoyang Xinqianglian Slewing Bearing approved the transaction. On December 23, 2022 Shenzhen Capital Group Manufacturing Transformation and Upgrading New Materials Fund (L.P.)‘s Investment Committee approved this transaction and on December 27, 2022, the Investment Committee of Qingdao Chirui Investment Management Center (Limited Partnership) and Qingdao Qiandao Ronghui Investment Management Center (Limited Partnership) approved this transaction.

Th etransaction is subject to approval from acquirer shareholders, Shenzhen Stock Exchange and CSRC. Shengjiu Forging recorded total assets of CNY 1.43 billion and net assets of CNY 1.09 billion as of September 30, 2022. Dongxing Securities Corporation Limited (SHSE:601198) acted as financial advisor, GF Law Firm acted as legal advisor and Moore Stephens Da Hua acted as accountant to Luoyang Xinqianglian Slewing Bearing Co., Ltd.