Shenyang Machine Tool completes asset acquisition via share issuance

Shenyang Machine Tool Co., Ltd. announced the completion of the asset transfer and registration process related to its issuance of shares to purchase assets and raise supporting funds, a transaction classified as a related party transaction. The purchased assets include 100% equity in Shenyang Zhongjie Aerospace Machine Tool Co., Ltd., 100% equity in Shenyang Machine Tool Zhongjie Friendship Factory Co., Ltd., and 78.45% equity in Tianjin Tianduan Forging Press Co., Ltd. from the two controlling shareholders. These transfers were executed via the issuance of new shares, with the China Securities Regulatory Commission (CSRC) having approved the registration in April 2025. The overall transaction, valued at CNY 172,415,270,000, involves key entities under China General Technology (Group) Holding Co., Ltd., which has increased its stake in Shenyang Machine Tool to 50.02% after the transaction. This transaction aims to address potential conflicts of interest and bolster the company's competitiveness, as agreed upon with the CSRC. It also aligns with a broader effort to consolidate assets and improve Shenyang Machine Tool’s financial standing post its 2019 restructuring. The new shares are subject to a 36-month lockup period from the last day of trading.