YOFC (06869) plans to invest about 583 million yuan to further acquire 30% equity of Baosheng Submarine Cable.

YOFC (06869) announced that on September 20, 2024, the company (as the buyer) entered into a property transaction contract with Baosheng Science And Technology Innovation (as the seller). The company agreed to acquire 30% equity of Baosheng Sea Cable from Baosheng Science And Technology Innovation for a cash consideration of approximately RMB 583 million. After the completion of the acquisition, the target company will be owned 60% by the company, therefore becoming a non-wholly-owned subsidiary of the company, and the financial performance of the target company will be consolidated into the group's consolidated financial statements. The announcement stated that the target company has a strong underwater cable manufacturing capability, advanced technology research and development capabilities, and a solid customer base. The acquisition will further enhance the company's industry positioning in this sector and will enable the company to expand into the entire industry chain of underwater cables and marine engineering. Prior to the acquisition, the company held 30% equity of the target company. Obtaining controlling interest in the target company will enable the company to achieve greater synergies in underwater cable manufacturing, installation, and marine engineering construction.