Announcement Regarding the Planning of Asset Acquisition and the Signing of Intent Documents
Special Notice:
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Guangzhou Jinzhong Auto Parts Co., Ltd. (hereinafter "the Company") intends to acquire all equity of Hefei Kanchi Auto Parts Co., Ltd. (hereinafter "the Target Assets" or "Kanchi") via cash. If successfully implemented, the Company will hold 100% of Kanchi's equity, and Kanchi will be included in the Company's consolidated financial statements. Simultaneously, the Company intends to purchase all fixed assets held by Mengdachi Auto Systems (Anhui) Co., Ltd. (hereinafter "Mengdachi") as of July 31, 2026 (collectively referred to as "the Target Assets" with Kanchi below) via cash.
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The "Letter of Intent for Acquisition" and the "Asset Acquisition Term Sheet" signed this time represent the preliminary intentions reached between the Company and the various transaction parties regarding the acquisition. The specific transaction plan, transaction amount, and other matters will be clarified in the final formal transaction agreement after the Company and its engaged intermediary agencies complete due diligence, auditing, and valuation (if any) of the Target Assets, and after consultation among all transaction parties.
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According to the "Rules Governing the Listing of Stocks on the ChiNext Market of the Shenzhen Stock Exchange," the "Administrative Measures for Major Asset Restructuring of Listed Companies," and other regulations, this transaction does not constitute a related-party transaction and is not expected to constitute a major asset restructuring. This transaction does not involve the issuance of shares by the Company and will not lead to a change in the Company's control.
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The Company will strictly fulfill its decision-making approval procedures and information disclosure obligations in a timely manner according to relevant laws, regulations, and the "Articles of Association" based on the progress of the transaction. This transaction is still in the planning stage, and there is uncertainty as to whether the final transaction can be reached. Investors are advised to make decisions cautiously and pay attention to investment risks.
I. Specific Details of the Planned Asset Acquisition
(I) Overview of the Signing of Intent Documents
On July 23, 2026, the Company signed the "Letter of Intent for Acquisition" with Kanchi and its sole shareholder, Ningbo Dechi Auto Technology Co., Ltd. (hereinafter "the Seller" or "Dechi"). The Company intends to acquire 100% of the equity of Kanchi held by Dechi via cash. If successfully implemented, Kanchi will become a wholly-owned subsidiary of the Company and be included in the Company's consolidated financial statements. On the same day, the Company signed the "Asset Acquisition Term Sheet" with Mengdachi and its sole shareholder, Mengdachi Auto Systems (Suzhou Industrial Park) Co., Ltd. (hereinafter "Suzhou Mengdachi"), intending to acquire all fixed assets held by Mengdachi as of July 31, 2026.
(II) Main Purpose of the Transaction
Mengdachi specializes in automotive interior and exterior trim parts, with core products including automotive bumpers, spoilers, and door trim panels. The fixed assets involved in its production and operation consist partly of its own machinery and equipment, and partly of buildings and equipment leased from Kanchi. Aside from owning the aforementioned fixed assets and leasing them to Mengdachi, Kanchi has not conducted other business activities to date. Given that Mengdachi's business premises and production lines have been certified by its existing vehicle manufacturer customers and are in a state of stable mass production and delivery, the Company intends to purchase the aforementioned Target Assets to take over Mengdachi's relevant business. This will allow the Company to enter the field of exterior trim parts such as bumpers, spoilers, and door trim panels, further improving the Company's product layout and enhancing its comprehensive competitiveness in the automotive interior and exterior trim field.