Zhengzhou Coal Mining to fully acquire subsidiary Yaxinke Nanjing

Zhengzhou Coal Mining Machinery Group Co., Ltd. (SSE: 601717) announced its plan to acquire the remaining 16.6081% stake in its subsidiary, Yaxinke Industrial Technology (Nanjing) Co., Ltd. ("Yaxinke Nanjing"), for approximately $97 million (¥699 million). This transaction will increase Zhengzhou Coal Mining's ownership in Yaxinke Nanjing from 83.3919% to 100%. The transaction price is based on a valuation of ¥4.21 billion for Yaxinke Nanjing, determined after considering the impact of a ¥290 million dividend distribution. The deal, which involves multiple related parties, has been approved by the company's board and supervisory committee. The acquisition is aimed at strengthening industrial synergy and improving profitability. While the transaction constitutes a related party deal, it does not qualify as a major asset restructuring under regulatory guidelines, and therefore does not require shareholder approval.