SACA Precision Manufacturing Co., Ltd to Acquire 100% Equity Interests of HUAHUI Group for RMB 1.53 billion

Date:2018 / 07 / 17

SACA Precision Manufacturing Co., Ltd (“SACA”, “Company”) this evening announced that it would acquire 100% equity interest from HUAHUI Group (“HUAHUI”). By consensus of all parties, the price of 100% equity of HUAHUI in this transaction is determined to be RMB 1,530 million, of which RMB 890.5235 million will be paid by issuing shares and RMB 639.4765 million will be paid by cash.

The issue price of the shares to purchase the assets is RMB 8 per share, and a total of 111,315,433 shares are issued. Meanwhile, the company plans to issue shares to no more than 5 qualified specific grantees to raise supporting funds, which are mainly used to pay for the cash consideration of the transaction, related fees of the transaction and the project construction of HUAHUI R&D Center., and the total amount of supporting funds is no more than RMB 767.8165 million.

According to the announcement, HUAHUI is a well-known cross-border export e-commerce enterprise in Shenzhen. Its main income comes from overseas product sales, and it has years of digital marketing experience. Through data mining technology, it finds target customer groups and realizes the point-to-point delivery of products from the manufacturers through to end users.

The company stated that the acquisition of HUAHUI is an important step in the implementation of the company’s international and diversified development strategy and the implementation of the company’s industrial layout. After the completion of the reorganization, HUAHUI will become a wholly owned subsidiary of SACA. The listed company will integrate and optimize the supply chain, which will not only give full play to the technical advantages of its own manufacturing end, but also make use of the professional experience of HUAHUI in e-commerce marketing. It will be driven by ‘Precision Manufacturing + Cross-Border E-commerce’, opening up a new sales structure for products and improving overall profitability.

Article source:China Securities Journal and China Securities Website