Southwind Wind Power acquired 100% equity of Zhongxing Equipment for 1.92 billion yuan

Nanfang Fan Co., Ltd. is a joint stock company established on August 8, 2008 by the overall change of the South China Blower Co., Ltd., with a registered capital of RMB 70 million. Nanfang Fan Co., Ltd. is the largest company in south China that specializes in the design and product development, manufacturing and sales of ventilation and air treatment systems. The business is mainly for nuclear power, subway, tunnels, wind power blades and large industrial civil buildings.

Recently, Nanfeng Wind Turbine Co., Ltd. (hereinafter referred to as Nanfeng Shares) announced that it will acquire 100% equity of Zhongxing Energy Equipment Co., Ltd. (Zhongxing Equipment) at a price of 1.92 billion yuan by issuing shares in combination with cash payment. Among them, the company will pay 267 million yuan in cash, and the rest will be paid by issuing 5,253.98 million shares at 31.47 yuan per share. At the same time, the company will not raise more than ten other specific investors to raise additional funds not exceeding 400 million yuan.

According to company announcements, the company’s acquisition of the underlying ZTE equipment in 2012 achieved operating revenue and net profit of RMB 588 million and RMB 118 million, respectively, which were 169.28% and 290.56% of Nanfeng shares for the same period. After the completion of the transaction, the company’s performance will be Will have a significant effect. At the same time, on the one hand, ZTE's equipment and the listed company's main business have a high degree of fit, with a cross-client network, there is a consistent pursuit of interest and a high degree of complementarity, on the other hand, this restructuring can further improve the company's sales network It helps the company find new business growth points.

The development of Nanfeng shares in recent years has attracted considerable attention. Traditionally, the company is the largest ventilation and air treatment system leader in South China, especially in the field of domestic nuclear fan equipment, and the company’s market share exceeds 70%, due to Fukushima in previous years. The adverse impact of nuclear leakage on the construction of nuclear power plants affected the production of the company’s nuclear power ventilation equipment. However, with the acceleration of the national nuclear power plant construction, the company’s traditional business has regained the opportunity to accelerate development. At the same time, the company has actively explored new products in the past two years, especially PM2.5 processing equipment and 3D printing technology, opening up new market space for the company, especially the latter “heavy metal components fused precision molding technology” known as the most With the market potential of high-end 3D printing applications, once it is put into use, the downstream market will expand by 600-80 billion yuan, which has attracted widespread market attention.

In addition, the acquisition of Zhongxing equipment can also indirectly accelerate the company's industrialization of heavy metal 3D printing technology. The announcement pointed out that in the research and development of 3D printing technology, the company has high requirements for the metal component base metal (special metal material). ZTE's equipment has a solid foundation for the research and development of special metal materials that have been accumulated over the years. At the same time, ZTE's well-established customer base is expected to accelerate the market expansion of heavy metal 3D printing technology for listed companies.

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