LINOR plans to acquire 100% equity of Xuhua Machinery for 260 million yuan to strengthen its valve business

According to the Zhitong Finance APP, Zhejiang Linor (300838.SZ) announced that the company's board of directors and supervisory board reviewed and approved the proposal to acquire 100% equity of Xuzhou Chemical Machinery Co., Ltd. It was agreed that the company would sign the "Acquisition Agreement of Xuzhou Chemical Machinery Co., Ltd. between Zhejiang Linor Fluid Control Technology Co., Ltd. and Cheng Lu, Li Shu, Geng Shiji, and 20 other individuals/legal entities" with Xuzhou Chemical Machinery Co., Ltd. (referred to as "Xuhua Machine") and others. The company plans to acquire 100% equity of Xuhua Machine by purchasing the equity held by the original shareholders of the target company for cash of 260 million yuan. Upon completion of this equity transfer, Xuhua Machine will become a wholly-owned subsidiary of Zhejiang Linor and will be included in the company's consolidated financial statements. The announcement stated that Xuhua Machine was restructured from the bankruptcy of Xuzhou Chemical Machinery General Factory in 2004 and currently retains only part of its packaging business. Its main business is conducted by its subsidiary, Xuzhou Aika Control Valve Co., Ltd. (referred to as "Xuzhou Aika"), which mainly produces single-seat cage-type control valves, pneumatic diaphragm actuators, valve positioners and intelligent valve positioners, angle stroke diaphragm actuators, triple eccentric butterfly valves, "V" type eccentric rotary valve series, self-operated valves, micro flow valve series, and various special valves for specific industries. The announcement stated that if the company obtains control of Xuhua Machine, it could compensate for its shortcomings in control valve technology and categories, thereby enhancing the company's overall strength. On the other hand, it could expand the company's industrial layout in the northern market and quickly respond to the needs of customers in the northern market