Suolian Co., Ltd. plans to acquire Huahui Industrial; Yu Development significantly reduces the size of the private placement financing.

Yongyu Capital Operations in Chongqing and Yubei Have New Measures.

On May 9th, leading Chongqing auto parts company SuoLian Co., Ltd. (301397) announced that, based on a long-term sustainable development strategic plan, to further enrich the company’s upstream and downstream industrial chain layout, expand product lines, and enhance overall solution capabilities, the company signed an “Investment Intent Agreement” with Chengdu High-tech Zone Huahui Industrial Co., Ltd. (“Huahui Industrial”) and its shareholders Ren Xiaofeng and Ren Chengjun. The plan is to acquire at least 51% of its equity through capital increase and cash purchase of some shares held by its controlling shareholder Ren Xiaofeng and other shareholders. The overall valuation of Huahui Industrial’s 100% equity is tentatively set at no more than 250 million yuan.

It is reported that Huahui Industrial was established in July 2003, with a registered capital of 12.75 million yuan, located in Shiyang Township, Chengdu High-tech Zone. The legal representative is Ren Xiaofeng, who holds 96.0784% of shares; Ren Chengjun holds 3.9216%. Its main business is the research, development, and sales of special connectors, auto parts, and gas water heater components.

Huahui Industrial produces TLN, TLE, TLK, TLB, and high-voltage, high-current, water-proof, gas-proof push-pull self-locking connectors in the special connector industry; produces electronic water pumps, electronic three-way/four-way valves, thermal management modules, automotive air conditioning actuators, and speed regulation modules in the automotive industry; produces electronic water pumps, flow regulation valves, flow sensors, and other products in the gas water heater industry.

SuoLian Co., Ltd. stated that its main business focuses on the design, research and development, and sales of plastic fluid pipeline products and components for automotive use. After careful screening, Huahui Industrial’s product system complements the company’s technology, customer resources, and supply chain management.

One of the “Big Three” in Chongqing, Yu Development (000514), also disclosed a plan for issuing shares to specific targets (third revised draft). The planned issuance has been adjusted from no more than 165 million shares (including) to no more than 30 million shares (including); the total amount of funds raised has been adjusted from no more than 640 million yuan to no more than 81.1432 million yuan; after deducting issuance costs, the funds will be used for the Yudevelop Glee City project, Guanjin Hefu Phase I project.

It is understood that in June 2023, Yu Development launched a private placement plan, intending to issue no more than 165 million shares (including) to up to 35 specific targets, including the controlling shareholder Chongqing Chengtou, raising no more than 700 million yuan (including). The funds will be used for the Glee City project, Guanjin Hefu Phase I project, three residential projects including Nanyue Tianchen Phase I and II, and to supplement working capital. Among them, Chongqing Chengtou plans to subscribe with cash for no less than 5% (including) and no more than 30% (including) of the actual shares issued. On August 26, 2024, the application for the private placement was accepted by the Shenzhen Stock Exchange.

In December 2024, the company revised the private placement plan, re-evaluated and deducted parts involving community commercial properties and kindergartens involved in the fundraising projects, and adjusted the total amount of funds raised from “no more than 700 million yuan” to “no more than 640 million yuan.”

(Source: Upstream News)