Qingdao Victall Railway Co., Ltd. signed the letter of intent to acquire Chengdu Changtong Hongyuan Technology Co., Ltd. from Jiaxing Hongyuan Equity Investment Management Partnership (Limited Partnership), Chen Ling, Li Shikun, Du Yuhua, Xu Zhongbing and Bai Chonggang for CNY 630 million.
November 02, 2020
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Qingdao Victall Railway Co., Ltd. (SHSE:605001) signed the letter of intent to acquire Chengdu Changtong Hongyuan Technology Co., Ltd. from Jiaxing Hongyuan Equity Investment Management Partnership (Limited Partnership), Chen Ling, Li Shikun, Du Yuhua, Xu Zhongbing and Bai Chonggang on November 1, 2020. The consideration will be paid in cash. Qingdao Victall Railway Co., Ltd. (SHSE:605001) and Qingdao Jinfengheng Equity Investment Enterprise (Limited Partnership) signed share purchase agreement to acquire Chengdu Changtong Hongyuan Technology Co., Ltd. from Jiaxing Hongyuan Equity Investment Management Partnership (Limited Partnership), Li Shikun, Du Yuhua, Xu Zhongbing, Bai Chonggang and Shen Ling for CNY 630 million on November 18, 2020. In the acquisition, Qingdao Jinfengheng Equity Investment Enterprise (Limited Partnership) will acquire 5% stake from Shen Ling and Qingdao Victall Railway Co., Ltd. 95% stake from Jiaxing Hongyuan Equity Investment Management Partnership (Limited Partnership), Li Shikun, Du Yuhua, Xu Zhongbing, Bai Chonggang. Within 10 working days after the completion of the transaction, Qingdao Victall Railway Co., Ltd. and Qingdao Jinfengheng Equity Investment Enterprise (Limited Partnership) will pay 60% of the acquisition price. Within 10 working days after Chengdu Changtong Hongyuan Technology Co., Ltd.’s 2021 audit reports are issued, Qingdao Victall Railway Co., Ltd. and Qingdao Jinfengheng Equity Investment Enterprise (Limited Partnership) will pay 20% of the acquisition price. Within 10 working days after Chengdu Changtong Hongyuan Technology Co., Ltd.’s 2022 audit reports are issued, Qingdao Victall Railway Co., Ltd. and Qingdao Jinfengheng Equity Investment Enterprise (Limited Partnership) will pay 20% of the acquisition price. As of December 31, 2019, Chengdu Changtong Hongyuan Technology Co., Ltd. recorded total assets of CNY 26.02 million, net assets of CNY 19.1 million, total revenue CNY 18.35 million, net profit of CNY 4.45 million. As of June 30, 2020, Chengdu Changtong Hongyuan Technology Co., Ltd. recorded total assets of CNY 19.92 million, net assets of CNY 12.68 million, total revenue CNY 2.46 million, net loss of CNY 0.38 million. The transaction still needs to be reviewed and approved by the company's internal decision-making procedures. The transaction has been approved in the12th meeting of Qingdao Victall Railway Co., Ltd's 2nd Directorate held on November 18, 2020, and is subject to the shareholders’ approval.
Qingdao Victall Railway Co Ltd is a China-based company mainly engaged in the research and development, manufacturing and sales of rail transit vehicle supporting products. The Company's products are primarily divided into five categories. The interior products include roof panels, wall panels, air ducts, vehicle display screens, partitions, roller blinds, bar counters, seats and others. The toilet system includes vacuum toilet system, toilet module, water tank and washroom, among others. The metal structural parts include skirt board fastening devices, hangers, equipment compartment frames, line pipe fixing brackets, equipment welding brackets and others. The modular products include opening and closing mechanisms and shade screens, among others. The exterior structural parts include head shells, pantograph diversion covers, skirt boards and bottom diversion covers. The Company also provides vehicle maintenance services.
Qingdao Victall Railway Co., Ltd. signed the letter of intent to acquire Chengdu Changtong Hongyuan Technology Co., Ltd. from Jiaxing Hongyuan Equity Investment Management Partnership (Limited Partnership), Chen Ling, Li Shikun, Du Yuhua, Xu Zhongbing and Bai Chonggang for CNY 630 million.
QINGDAO VICTALL RAILWAY CO., LTD. 
