Shanghai Yongli Belting plans to acquire a 5% stake in Yongli Kaibo to further expand its control over the company.

Shanghai Yongli Belting (300230.SZ) announced that the company plans to purchase 5% equity of Shanghai Yongli KaiBo Transmission System Co., Ltd. (referred to as "Yongli Kaibo") owned by Mr. Luo Chenhui, a natural person, with its own funds. According to the evaluation report issued by YinXin Assets Appraisal Co., Ltd., after negotiation between the parties, both parties agreed that the final transaction price for the 5% equity of Yongli Kaibo is 1.9 million RMB. The company intends to acquire 5% equity of Yongli Kaibo in order to further expand its controlling stake, improve decision-making efficiency over its subsidiary companies, reduce management costs and risks; this will be beneficial in obtaining better returns from the business growth of Yongli Kaibo and further enhance the company's sustainable profitability.