RONGTA TECH (09881) surged more than 16% in late trading, closing up 15.59% at HK$15.2 with a turnover of HK$3.9298 million. The company announced its intention to acquire all issued shares of Shenzhen YANKE Digital Co., Ltd. for no more than RMB 65 million.
YANKE Digital primarily engages in the R&D and production of printing equipment. Upon completion of the potential acquisition, RONGTA TECH will effectively integrate YANKE Digital's resources in embedded systems and modules. The target company has maintained a leading position in the Chinese market, boasting a significant market share and strong brand reputation.
Currently, RONGTA TECH has not yet developed large-scale operations in this product line. The acquisition will enable the company to swiftly expand its embedded and module product offerings, enhancing the completeness and competitiveness of its overall product portfolio.
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