Shenzhen FRD Science & Technology (300602.SZ) plans to spend 380 million yuan to acquire 100% equity of Jiangsu Zhongyu, expanding its business into the new energy sector.

Shenzhen FRD Science & Technology (300602.SZ) announced that, in order to further extend the company's capability for sustainable development and comprehensive competitive advantage, expand the company's business in the new energy field, enrich and improve the industrial chain construction, the company's wholly-owned subsidiary Jiangsu Shenzhen FRD Science & Technology recently signed an agreement with the shareholders Ma Fei, Huang Weiwei, and Ao Yu of Jiangsu Zhongyu and Jiangsu Zhongyu on the acquisition of the equity of Jiangsu Zhongyu Rubber and Plastic Technology Co., Ltd. The company intends to acquire 100% of Jiangsu Zhongyu's equity held by the counterparties. After friendly communication among all parties, the final transaction price for the acquisition of 100% equity of Jiangsu Zhongyu was determined to be RMB 380 million. It is reported that the target company is a manufacturing enterprise integrating the production and sales of high-end rubber sealing parts and new energy vehicle rubber products, and has a professional technical team for rubber material research and development. This acquisition will enrich the company's product matrix in the field of new energy, enhance the company's comprehensive capabilities in electromagnetic shielding and thermal management solutions, effectively realize resource integration and business synergy, and help improve the company's overall competitive strength and market share. After the completion of this acquisition, the company will hold 100% equity of the target company, and Jiangsu Zhongyu will become a wholly-owned subsidiary of the company and be included in the company's consolidated financial statements.