Hebei Sitong New Metal Material Co., Ltd completed the acquisition of 39.79% stake in Baoding Longda Aluminum Industry Co., Ltd. from Nippon Kinzoku Co., Ltd., Beijing Metal Challenge Global Trading Co., Ltd. and Baoding Asia Enterprise Management Consulting Co., Ltd.
March 30, 2021
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Hebei Sitong New Metal Material Co., Ltd (SZSE:300428) signed acquisition of assets through the issuance of shares agreement to acquire 39.79% stake in Baoding Longda Aluminum Industry Co., Ltd. from Nippon Kinzoku Co., Ltd. (TSE:5491), Beijing Metal Challenge Global Trading Co., Ltd. and Baoding Asia Enterprise Management Consulting Co., Ltd. for approximately CNY 390 million on August 27, 2020. Hebei Sitong New Metal Material will issue in total 21.4 million shares for the deal. Nippon Kinzoku Co., Ltd. will get 13.4 million shares, Beijing Metal Challenge Global Trading Co., Ltd. will get 5.9 million shares and Baoding Asia Enterprise Management Consulting Co., Ltd. will get 2.1 million shares as part of the deal. For the year ending December 31, 2019, Baoding Longda Aluminum Industry reported total assets of CNY 1.6 billion, net assets of NY 674.5 million, revenue of CNY 3.6 billion, operating profit of CNY 152 million and net profit of CNY 116.7 million.
The deal is subject to second approval of Hebei Sitong New Metal Materia's Directorate, Hebei Sitong New Metal Material's shareholders' approval, Shenzhen Stock Exchange's approval, The CSRC's approval and other necessary approvals. The deal has obtained approval of the 5th Meeting of Hebei Sitong New Metal Material's 4th Directorate and the 5th Meeting of the 4th Suprevisory Board held on August 27, 2020. Nippon Kinzoku Co., Ltd.'s Directorate, Baoding Asia Enterprise Management Consulting Co., Ltd.‘s Directorate, Baoding Longda Aluminum Industry Co., Ltd.'s Shareholders and Beijing Metal Challenge Global Trading Co., Ltd.'s Shareholders approved the transaction on August 17, 2020. As of March 24, 2021, securities regulator has approved the transaction. Wang Fang, Liu Junfeng, Wang Jianmin of Central China Securities Co., Ltd. (SEHK:1375) acted as financial advisor, Du Wei, Yao Tengyue of Zhong Lun Law Firm and Wu Qiang, Gu Qinggang, Lin Rukun of RSM China Certified Public Accountants Co., Ltd. provided accountant services to Hebei Sitong New Metal Material Co., Ltd.
Hebei Sitong New Metal Material Co., Ltd (SZSE:300428) completed the acquisition of 39.79% stake in Baoding Longda Aluminum Industry Co., Ltd. from Nippon Kinzoku Co., Ltd. (TSE:5491), Beijing Metal Challenge Global Trading Co., Ltd. and Baoding Asia Enterprise Management Consulting Co., Ltd. on March 30, 2021.
Lizhong Sitong Light Alloys Group Co Ltd, formerly Hebei Sitong New Metal Material Co Ltd, is a China-based company mainly engaged in the provision of new light alloy materials and lightweight automotive parts. The Company mainly operates three reporting segments, Functional Master Alloy New Material segment, Aluminum Alloy Wheel Lightweight segment, Cast Aluminum Alloy and other Business segment. The Company mainly provides three major businesses: functional master alloy new materials, cast aluminum alloy materials and aluminum alloy wheel products. The Company's products are widely used in automotive, high-speed rail, aerospace, military, power and electrical appliances, 5G communications, consumer electronics, industrial and architectural aluminum profiles, food and medicine packaging and other fields.
Hebei Sitong New Metal Material Co., Ltd completed the acquisition of 39.79% stake in Baoding Longda Aluminum Industry Co., Ltd. from Nippon Kinzoku Co., Ltd., Beijing Metal Challenge Global Trading Co., Ltd. and Baoding Asia Enterprise Management Consulting Co., Ltd.
LIZHONG SITONG LIGHT ALLOYS GROUP CO., LTD. 
