Recently, Guihang Co., Ltd. announced that it intends to jointly invest in a new company with Hebei Hongtu to acquire all of its automotive sealing strip business and assets, and to acquire a wholly-owned Korean company, Beijing Daqi, whose main business is automotive air conditioning. 75% equity of Air Conditioning Co., Ltd.

 

Guihang Co., Ltd. intends to jointly invest in Hebei Xinhang Hongtu Auto Parts Co., Ltd. with Hebei Hongtu in cash. The registered capital of the new company is 113 million yuan, of which Guihang shares will invest 51.63 million yuan to hold 51% of the new company. . After the establishment of the new company, it will acquire the entire automotive sealing strip business of Hebei Hongtu in cash.

 

The company intends to acquire Hebei Hongtu Automobile Sealing Strip business and assets through the establishment of subsidiaries, and utilizes Hebei Hongtu's existing supporting system with major domestic automobile manufacturers to rely on Hebei Hongtu “Provincial Technology Center” and “National Laboratory”. "To achieve technical improvement of sealing strip products and simultaneous development capabilities with OEMs; complement product mix and market distribution, expand market share; further enhance the company's overall competitiveness."

 

At the same time, Guihang will acquire Beijing Daqi Company, which is mainly engaged in the production and sales of automotive air-conditioning system stamping parts, automobile sunroof stamping parts and car seat skeleton parts. Daqi's products mainly supply first-tier suppliers of Beijing Hyundai Motor, such as Visteon Corporation, Beijing Hanyi Company and Beijing Da Shi Company. Guihang shares said that the transaction will enrich and expand the company's auto parts product chain, and obtain advanced R&D technology, production technology and management experience in the field of automotive air conditioning, enhance the company's technical capabilities, and further enhance the company's auto parts market. Comprehensive competitiveness, the investment profit rate is expected to be good.