HK Stock Market Move | Great Wall Motor (02333) rose more than 3% in early trading, intending to acquire the remaining 80% equity of Wuxi Xindong to enhance industrial synergy and overall competitiveness.

Great Wall Motor (02333) rose more than 3% in the morning session, up 3.28% to 12.6 Hong Kong dollars as of press time, with a turnover of 104 million Hong Kong dollars. On the news front, on February 21, Great Wall Motor announced that its indirect wholly-owned subsidiary, Novo Auto Technology Co., Ltd. (hereinafter referred to as "Novo Technology"), signed an equity transfer agreement with Wensheng Technology (Tianjin) Co., Ltd. (hereinafter referred to as "Wensheng Technology") to enhance industrial synergy and overall competitiveness. Novo Technology intends to use its own funds of RMB 3,792,157.77 to acquire 80% of the equity of Wuxi Xindong Semiconductor Technology Co., Ltd. (hereinafter referred to as "Wuxi Xindong") held by Wensheng Technology. After the completion of the above-mentioned equity acquisition, Novo Technology will hold 80% of the equity of Wuxi Xindong, and the company will hold 20% of the equity of Wuxi Xindong, which will be included in the company's consolidated financial statements. The announcement stated that the transaction is based on the company's business development and operational needs. This acquisition is beneficial for the company's vertical integration in the industry, improving production and operation efficiency, helping the company form a more complete industrial chain, enhancing industrial synergy and overall competitiveness, reducing related-party transactions, further reducing costs and improving efficiency, promoting higher quality development of the enterprise, and creating greater value for the company and shareholders. After the completion of the equity acquisition, the company will directly or indirectly hold 100% of the equity of Wuxi Xindong, which is in line with the company's long-term development and the interests of all shareholders, and will not have any adverse impact on the company's current or future financial condition and operating results.