STOCKS | Xinrui Shares Plans to Buy 80% Stake in Huilian Electronics for 800 Million Yuan

Xinrui Shares said it planned to acquire an 80% equity stake in Xinxiang Huilian Electronic Technology Co., Ltd. for 800 million yuan, with funding to come from its own funds and M&A loans. According to Jin10, the company also planned to acquire a 70% stake in WINWINHITECHCO.LTD. for no more than 28 million yuan to address horizontal competition and expand overseas markets. The company said the transactions do not constitute a related-party transaction or a major asset restructuring and still need to be submitted to a shareholders’ meeting for review. After completion, the company expected the deal to generate about 400 million yuan of goodwill, and it expected its asset-liability ratio to rise to about 55%.