Ningbo Shenglong to Invest in Nanchang Jiling, Acquiring 5.14% Stake

Stock News05-29

Ningbo Shenglong Automotive Powertrain System Co.,Ltd. (603178.SH) announced its intention to invest 18 million yuan of its own funds into Nanchang Jiling New Energy Technology Co., Ltd. ("Nanchang Jiling"). Of this amount, 802,800 yuan will be added to Nanchang Jiling's registered capital, with the remaining 17.1972 million yuan allocated to its capital reserve. Upon completion of this capital increase, Ningbo Shenglong will hold a 5.14% equity stake in Nanchang Jiling.

Furthermore, Ningbo Shenglong's wholly-owned subsidiary, Shenglong Zhongcheng Automotive Parts (Anhui) Co., Ltd. ("Shenglong Zhongcheng"), plans to enter into an Asset Purchase Agreement with Nanchang Jiling. The agreement involves the sale of assets owned by Shenglong Zhongcheng, including machinery, equipment, facilities, tools, molds, materials, and other inseparable assets and rights related to them (collectively, the "Target Assets"), to Nanchang Jiling for a transaction value of 12.7762 million yuan.

This move aligns with the company's strategic development and business needs, aiming to focus more on core high-quality projects and optimize resource allocation. The plan is to develop the generator controller assembly business of Shenglong Zhongcheng through an investment and cooperation model with leading companies in the industry.

Nanchang Jiling has deep expertise in the range-extender power generation sector, possessing extensive industry development experience and a strong customer base. Its business broadly covers the automotive and engineering machinery fields, and it holds significant technical prowess and mature production capacity advantages in controller R&D and manufacturing. This transaction is expected to facilitate resource integration between the two parties, contributing to the further expansion and strengthening of the related business.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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