Fangzheng Electric (002196.SZ) plans to establish joint ventures with Bosch and others to focus on high-performance magnetic drive transmission systems

Zhitong Finance App News, Fangzheng Electric (002196.SZ) announced that the company and the company's indirect controlling shareholders, Deqing Caichuang Phase I Equity Investment Partnership (Limited Partnership) (“Cai Chuang Phase I”), Robert Bosch Internationale Beteiligungen AG (Chinese name is Robert Bosch International Investment Co., Ltd., “RBINT” for short), Bosch (China) Investment Co., Ltd. (“RBCN” for short) , together with RBINT (collectively known as “Bosch”) and Jiangsu Bozhong Intelligent Technology Group Co., Ltd. jointly invested RMB 39 million to establish Zhejiang Music Drive Technology Co., Ltd. (temporary name, subject to review by the registration authority).

The purpose of this investment to establish a joint venture is to provide high-quality products and services to the Chinese domestic market, serve the best interests of shareholders, and obtain the best economic returns for shareholders through the introduction of foreign capital and advanced technology and management techniques. The joint venture focuses on high-performance magnetic drive transmission systems. On the one hand, it can bring potential investment benefits to the company, and on the other hand, the company can provide the joint venture with the motors required for the system, bringing business synergy effects.