China Leon announces profit forecast for target company acquisition

China Leon Inspection Holding Limited (HKEX:1586) has issued an announcement detailing the profit forecast connected to its acquisition of the remaining 45% equity stake in an unnamed target company. The valuation, prepared by Zhongjing Minxin (Beijing) Assets Appraisal, estimated the fair value of 100% equity interests in the Target Group at RMB179,334,773 as of the Valuation Date. The valuation adopted an income approach, specifically a discounted cash flow method, thus constituting a profit forecast under Listing Rules. Ernst & Young reviewed the calculations. The Board believes the valuation is fair and reasonable, made after careful enquiry, and relies on key assumptions about future economic conditions and the Target Company's operations.