Yuantong Industrial holding Golden Wheel shares of 1 billion yuan will enhance the competitiveness of stainless steel business.

On the evening of January 4, Jinlun shares issued an indicative announcement on the signing of the "Agreement of intention to transfer of shares" signed by the controlling shareholders and their concerted actors and actual controllers and the proposed changes of the controlling shareholders and actual controllers.

According to the announcement, on January 4, 2022, the company's controlling shareholder Nantong Golden Wheel Holdings Co., Ltd. (hereinafter referred to as "Golden Wheel Holdings") and its concerted actor, Anfu International (Hong Kong) Investment Co., Ltd. (hereinafter referred to as "Anfu International"), Mr. Lu Ting, the actual controller of the company, and property Zhongda Yuantong Industrial Group Co., Ltd. (hereinafter referred to as "Yuantong Industrial Group") signed a "share transfer intention Agreement". Yuantong Industrial and / or its related parties intend to transfer 29.00% of the shares of Jinlun by means of cash payment, and the transaction amount is tentatively set at RMB 999.5 million (hereinafter referred to as "this share transfer" or "this transaction"); Yuantong Industries may transfer all or part of its rights and obligations under the share transfer intention Agreement to its affiliated party, which shall designate the related party to perform its obligations and exercise the relevant rights under this Agreement without the prior consent of other parties.

This share transfer involves the change of the controlling shareholder and the actual controller of the listed company. After the completion of this transaction, Yuantong Industry will become the controlling shareholder of the listed company, and the State-owned assets Supervision and Administration Commission of the people's Government of Zhejiang Province will become the actual controller of the listed company.

On the same day, property Zhongda Yuantong Industrial Group Co., Ltd. (Yuantong Industrial Group Co., Ltd.), a subsidiary of the company, signed a "share transfer intention Agreement" with Nantong Golden Wheel Holdings Co., Ltd., an Fu International (Hong Kong) Investment Co., Ltd. And Lu Ting. Yuantong Industrial and / or its related parties intend to transfer 29% of the Golden Wheel shares by means of cash payment, and the transaction amount is tentatively set at about 1 billion yuan. The trading price per share is 19.64 yuan.

According to public information, Jinlun shares are mainly engaged in R & D, production and sales in the field of textile carding equipment and stainless steel decoration materials. In the first three quarters of 2021, Jinlun shares achieved operating income of 2.341 billion yuan and net profit of 125 million yuan, up 43.75% and 513.69% respectively over the same period last year. During the reporting period, the overall situation of the textile carding equipment industry is good, ushering in a rebound in consumption, promoting the growth of the company's orders; in terms of stainless steel decorative board business, the company focuses on resources to serve key customers, and the procurement proportion of major customers increases steadily.

Zhongda said that after the completion of this acquisition, Jinlun shares will be included in the scope of the company's consolidated statements. Yuantong Industrial and Jinlun shares, the holding subsidiaries of the company, have the synergy effect of stainless steel industry. After integration, it will enhance the competitiveness of the company's stainless steel business, help to enhance the company's profitability and the right to speak in the industrial chain, and meet the needs of the company's strategic planning and development.

Jinlun shares said that if the implementation of this share transfer is completed, the company's controlling shareholders and actual controllers will change, and the introduction of state-owned capital holding by the company will help to optimize the company's shareholder structure, help to enhance the company's financial credit and financial strength, improve the company's anti-risk ability, improve the company's stainless steel industry chain, and facilitate the coordinated development of superior resources between the company and shareholders. Improve the overall profitability of the company. This change of rights and interests will not have a significant adverse impact on the company's daily production and business activities, the company will maintain the stability of the existing management team, continue to focus on the main business, and maintain the continuity and stability of the development strategy.

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