Guangzhou Jinzhong Auto Parts Manufacturing (301133.SZ) plans to acquire 100% equity of Kaichi and the fixed assets of Mengdachi.

Guangzhou Jinzhong Auto Parts Manufacturing (301133.SZ) announced that the company intends to establish a new subsidiary as the implementation entity to acquire 100% equity of Hefei Kaichi Auto Parts Co., Ltd. (referred to as "Kaichi") for a cash amount of 159 million yuan, and to purchase all fixed assets (referred to as "target assets") held by Mengdachi Auto Systems (Anhui) Co., Ltd. (referred to as "Mengdachi") for a cash amount of 25 million yuan, which will be valid until July 31, 2026. The target assets mainly include production-related equipment and facilities such as injection molding machines and assembly lines. It is known that Kaichi's main business is real estate and equipment leasing, all of which are leased to Mengdachi, and its operating income comes from the rent charged to Mengdachi. After the transaction is completed, Mengdachi will exit the relevant business sector, and the related leasing agreements between Kaichi and Mengdachi will be terminated. The company will use Kaichi as the business entity, utilizing the target assets to take over the relevant business of Mengdachi. Upon completion of this transaction, the company can quickly penetrate niche markets such as automotive bumpers, spoilers, and door guards, further enriching its product layout based on the existing product matrix. Relying on the mature mass production lines of the target assets can effectively shorten the cycles required for customer certification, capacity construction, and capacity ramp-up. Coupled with the companys existing industry accumulation and customer resources in the automotive interior and exterior trim field, it can swiftly achieve market expansion and business synergy, cultivate new performance growth points, and enhance the companys overall competitiveness in the automotive interior and exterior trim sector.