SKYWORTH GROUP (00751) Plans to Acquire 40% Stake in Fengchi Electronics and Inject Additional Capital

Stock News
Oct 26

SKYWORTH GROUP (00751) has announced that, to enhance its long-term development by focusing resources on core businesses, reducing related-party transactions, and avoiding competition within the same industry, its wholly-owned subsidiary, Shenzhen Skyworth Digital Co., Ltd. (Skyworth Digital), intends to transfer its 40% stake in Fengchi Electronics, representing a registered capital of RMB 4 million, to SKYWORTH GROUP for RMB 116 million. Additionally, SKYWORTH GROUP will inject RMB 104 million into Fengchi Electronics by assessing its 100% stake in Shenzhen Anshida Technology Service Co., Ltd. (Anshida), corresponding to a registered capital of RMB 30 million. Shenzhen Skyworth Digital plans to waive its preemptive rights for the RMB 115 million capital increase for this transaction. Prior to this transaction, Shenzhen Skyworth Digital held an 84% stake in Fengchi Electronics. After the completion of this share transfer and capital increase, its stake is expected to decrease to 32.40% (final amount subject to actual business registration). Fengchi Electronics will no longer be included in the consolidated financial statements of the company. Following this transaction, SKYWORTH GROUP is anticipated to hold a 55.82% stake in Fengchi Electronics.

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