Zhongcheng Rapid Transit Holding Group Co., Ltd agree to acquire 5% stake in Hunan CRRC Intelligent Transport Technology Co., Ltd from Zhejiang Founder Motor Co., Ltd. (SZSE:002196) for CNY 21.5 million on March 22, 2023. Zhongcheng Rapid Transit Holding Group Co., Ltd signed a Share Transfer Agreement to acquire a 5% stake in Hunan CRRC Intelligent Transport Technology Co., Ltd from Zhejiang Founder Motor Co., Ltd. (SZSE:002196) on August 3, 2023. Zhongcheng Rapid has paid CNY 20 million and will pay the remaining within three working days from transfer completion date.

The 28th session of the company?s 7th directorate and the 20th session of the company?s 7th supervisory board approved the proposal on the transfer of equity in CRRC Intelligent Transport. After the transaction, Zhongcheng Rapid Transit will own 5% stake in the target. For year ended December 31, 2022, CRRC Intelligent Transport had Total assets of CNY 960 million, Net asset of CNY 430 million, Revenue CNY 500 million and Net profit CNY 160 million.

This transaction still needs to be approved by the company?s shareholders? meeting. The transaction is approved by the shareholders on April 7, 2023.