Guangdong Topstrong Living Innovation and Integration Co., Ltd. signed an agreement to acquire remaining 96.3% stake in Shenzhen KAADAS Intelligent Technology Co., Ltd from Su Qiyun, Jiang Niangen, Xu Haiqing, Li Guangshun, Shenzhen Jianxin Yuanzhi Investment and Loan Linkage Equity Investment Fund Partnership Enterprise and Shenzhen Lingkai Business Management Partnership Enterprise (Limited Partnership) for CNY 1.2 billion.
November 06, 2019
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Guangdong Topstrong Living Innovation and Integration Co., Ltd. (SZSE:300749) signed an agreement to acquire remaining 96.3% stake in Shenzhen KAADAS Intelligent Technology Co., Ltd from Su Qiyun, Jiang Niangen, Xu Haiqing, Li Guangshun, Shenzhen Jianxin Yuanzhi Investment and Loan Linkage Equity Investment Fund Partnership Enterprise and Shenzhen Lingkai Business Management Partnership Enterprise (Limited Partnership) for CNY 1.2 billion on November 6, 2019. Guangdong Topstrong Living Innovation and Integration will issue 63.16 million shares and pay CNY 369.8 million in cash to Su Qiyun, Jiang Niangen, Xu Haiqing, Li Guangshun, Shenzhen Jianxin Yuanzhi Investment and Loan Linkage Equity Investment Fund Partnership Enterprise (Limited Partnership) and Shenzhen Lingkai Business Management Partnership Enterprise (Limited Partnership). Guangdong Topstrong Living Innovation and Integration plans to raise supporting funds of not more than CNY 380 million and will fund the cash portion of the acquisition. Guangdong Topstrong Living Innovation and Integration holds Shenzhen KAADAS Intelligent Technology Co., Ltd.’s 3.7037% stake, and after the acquisition, will hold 100%.
Guangdong Topstrong Living Innovation and Integration Co., Ltd. will acquire 74.5% stake from Su Qiyun for approximately CNY 950 million of which approximately CNY 290 million in cash and approximately CNY 670 million in stocks, 8.6% stake from Jiang Niangen for approximately CNY 110 million of which approximately CNY 33.2 million in cash and approximately CNY 77.6 million in stocks, 2.19% stake each from Xu Haiqing and Li Guangshun for approximately CNY 28 million of which approximately CNY 8.4 million in cash and approximately CNY 19.6 million in stocks, 3.70% stake from Shenzhen Jianxin Yuanzhi Investment and Loan Linkage Equity Investment Fund Partnership Enterprise for approximately CNY 47.4 million of which approximately CNY 14.2 million in cash and approximately CNY 33.2 million in stocks, 5% stake from Shenzhen Lingkai Business Management Partnership Enterprise (Limited Partnership) for approximately CNY 63.3 million of which approximately CNY 19.2 million in cash and approximately CNY 44.8 million in stocks.
For the year ended December 31, 2018, Shenzhen KAADAS Intelligent Technology Co., Ltd reported total assets of CNY 372.28 million, total revenue of CNY 599.07 million and EBIT of CNY 114.87 million. On November 6, 2019, Board of for Guangdong Topstrong Living Innovation and Integration approved the transaction. On December 24, 2019, the Company held the 22nd Meeting of the 3rd Directorate and the 14th Meeting of the 3rd Supervisory Board, and approved the acquisition of assets through the issuance of shares and cash and raising of supporting funds. As on March 4, 2020, the Proposal on Adjusting the Company's Major Asset Reorganization Plan was approved at 15th meeting of the third session of the Supervisory Committee. On March 20, 2020, at the second extraordinary general meeting of shareholders in 2020 approved the proposal. On May 27, 2020, Board and Supervisory Committee approved the audit reports.
Liu Dongying and Zhang Xuan of Lianchu Securities Co., Ltd. acted as financial advisor to Guangdong Topstrong Living Innovation and Integration Co., Ltd. Zhang Xiaoyan and Liu Zifeng of Zhong Lun Law Firm acted as legal advisor to Guangdong Topstrong Living Innovation and Integration Co., Ltd. Wu Cuishi and Liu Zehan of Moore Stephens Da Hua Certified Public Accountants acted as accountant to Guangdong Topstrong Living Innovation and Integration Co., Ltd.
GuangDong Topstrong Living Innovation & Integration Co., Ltd is a China-based company principally engaged in the research, development, manufacture and sales of smart home products, such as custom closets and matching furniture, boutique hardware and custom eco doors. Its custom closets and matching furniture include regular wardrobes, smart wardrobes, walk-in closets, bookcases and television cabinets. Its boutique hardware includes intelligent hardware products (including smart locks and smart washing machines) and traditional functional hardware products (including locks, sliding hardware, furniture hardware, door control hardware and bathroom hardware). Its custom eco doors mainly include energy-saving and environmental-friendly metal composite doors. The Company mainly distributes its products in domestic market.
Guangdong Topstrong Living Innovation and Integration Co., Ltd. signed an agreement to acquire remaining 96.3% stake in Shenzhen KAADAS Intelligent Technology Co., Ltd from Su Qiyun, Jiang Niangen, Xu Haiqing, Li Guangshun, Shenzhen Jianxin Yuanzhi Investment and Loan Linkage Equity Investment Fund Partnership Enterprise and Shenzhen Lingkai Business Management Partnership Enterprise (Limited Partnership) for CNY 1.2 billion.