Allied (301419.SZ) plans acquisition and capital increase to acquire not less than 51% of Yuanbao Precision

According to Zhitong Finance App, Allied (301419.SZ) announced that the company plans to acquire no less than 51% of the shares of Huizhou Yuanbao Precision Hardware Die Casting Co., Ltd. (hereinafter referred to as “Yuanbao Precision” or the “target company”) through cash transfers and capital increases. Prior to this transaction, the company did not hold shares in the target company; after the transaction is completed, the company will take control of the target company, and the target company will become a holding subsidiary of the company. The transaction is expected to constitute a major asset restructuring.

The target company is mainly engaged in R&D, production and service of optical communication cooling shell products, and has manufacturing capabilities from zinc alloy and aluminum alloy die casting, product design and mold development, CNC precision processing, post-processing, and automated assembly. This transaction is a prudent decision made by the company based on business development strategy needs and the company's long-term interests. It helps the company to further expand its business layout in related fields, enhance the company's supporting service capabilities in the ICT industry chain, make the company a leader in overall cooling solutions in related fields, have the ability to self-develop and produce all products that solve chip cooling problems, such as heat dissipation cases, electronic cooling materials, and electromagnetic shields, and enhance the company's continuous operation capability and comprehensive competitiveness.