Lonkey Industrial Co.,Ltd.Guangzhou (SZSE : 000523) agreed to acquire a 60% stake in Guangzhou Xinshicheng Enterprise Development Co., Ltd. from Guangzhou Light Industry & Trade Group Ltd. for approximately CNY 610 million on June 8, 2023. The consideration will be paid in form of exchange of 100% stake in Nansha Lonkey, Shaoguan Lonkey, Liaoning Langqi and 60% stake in Daily Chemical worth CNY 716,944,000. The difference of CNY 103,017,500 will be paid by Light Industry in cash.

Guangzhou Xinshicheng Enterprise had total assets, net assets, revenue, operating profit and net profit of CNY 1.07 billion, CNY 323 million, CNY 148.73 million, CNY 50.52 million and CNY 38 million, respectively for the year ended December 31, 2022. The transaction was approved by the internal decision-making party of the counter party, the 21st session of Lonkey Industrial?s 10th directorate. The transaction still needs to be approved by the Shareholders?

meeting of Lonkey Industrial and formal approval of Light Industry Group. Citic Securities Co., Ltd. acted as independent financial advisor, China Commercial Law Firm as Legal advisor and Guangdong Zhongzhixin Certified Public Accountants LLP as accountant of Lonkey Industrial.