Guanghe Communications Plans to Acquire Control of Hangsheng Electronics

Beijing Business Daily (Reporter Ma Huanchang, Li Jiaxue) — On the evening of March 24, Guanghe Tong (300638) announced that the company is planning to acquire control of Shenzhen Hangsheng Electronics Co., Ltd. (hereinafter referred to as “Hangsheng Electronics”) through a cash purchase. The transaction price and acquisition ratio are subject to further discussion and negotiation.

The announcement states that after the completion of this transaction, Hangsheng Electronics will become a controlling subsidiary of the company. According to preliminary estimates, this transaction is expected to constitute a major asset restructuring. The transaction will be conducted in cash, will not involve the issuance of shares by the company, does not constitute an related-party transaction, and will not result in a change of control of the listed company.

It is reported that Hangsheng Electronics’ main business is the research, design, production, and sales of automotive electronic products.

Guanghe Tong stated that the company has been deeply engaged in vehicle wireless communication modules for many years. By integrating downstream enterprises, the company has transformed from a supplier of vehicle-mounted communication modules to a full-stack provider of automotive electronic solutions. After the completion of this transaction, the company and the target company will undergo deep integration and collaboration, which will enhance the company’s business scale.

Market data shows that on March 24, Guanghe Tong’s stock rose by 4.28%, closing at 26.05 yuan per share, with a total market value of 23.43 billion yuan.