Chongqing Machinery & Electric acquires target equity in connected deal

Chongqing Machinery & Electric Co., Ltd. (HKEX: 2722) announced that its wholly-owned subsidiary, Chongqing Machine Tools Group, will acquire 100% equity interest in Chongqing Panlian Transmission Technology Co., Ltd. from Asset Company, a connected person, for a consideration of RMB35.62 million. The acquisition, formalized through an Equity Transfer Agreement, is classified as a connected transaction under Listing Rules. The asset-based approach was used for valuation by the Independent Valuer. This valuation aligns with the appraised net asset value of RMB35,621,200. The deal, expected to complete by December 31, 2025, will result in Target Company becoming an indirect wholly-owned subsidiary of Chongqing Machinery & Electric. The Board considers the acquisition fair and reasonable, beneficial to the company and its shareholders, and has unanimously approved it.