Shenyang Machine Tool injects capital into aerospace unit, scraps acquisition

Shenyang Machine Tool Co., Ltd. will inject CNY 100m of its own funds into its wholly-owned subsidiary, Shenyang Zhongjie Aerospace Machine Tool Co., Ltd. The capital increase aims to support the aerospace subsidiary's technological research and development, enhance its cash flow, and strengthen its competitiveness in the high-end CNC machine tool market. The aerospace subsidiary specializes in advanced CNC machine tools.

Concurrently, Shenyang Machine Tool has opted not to acquire a 68.87% stake in Nanjing Second Machine Tool Co., Ltd. for CNY 40m. This decision was made due to concerns about the target company's unstable profitability. Additionally, potential business integration risks stemming from differing management models and corporate cultures were cited. The company's controlling shareholder, China General Technology (Group) Holding Co., Ltd., will proceed with the acquisition.

In related news, Shenyang Machine Tool will renew its lease agreement for factory premises for three years (2026-2028), with an estimated total rent of CNY 16,002,600. The company will also reappoint Grant Thornton Certified Public Accountants as its auditor for 2025.