Guangdong Hongtu Plans to Acquire 60% Equity of Baolong Auto

Guangdong Hongtu Technology (Holdings) Co., Ltd. (“Guangdong Hongtu”), a industry leading manufacturer for the aluminum die castings, announced its plan to purchase 60% stock equity of Guangdong Baolong Automobile Co., Ltd.(Baolong Auto) with 240 million RMB, in order to realize its expansion strategy to the whole automobile and new energy automobile sectors.
Guangdong Hongtu plans to sign the Stock Equity Transfer Agreement with Baolong Auto and its shareholder. The appraised total value of Baolong Auto is valued at 400 million RMB by all parties, in which Guangdong Hongtu will offer a bid of 240 million RMB to acquire 60% of the total equity. After acquisition, Baolong Auto will be a subsidiary of Guangdong Hongtu. 
Baolong Auto, the former Guangzhou Oriental Baolong Automobile Industry Co., Ltd., has been founded in April 2015 with a registered capital of 21 million RMB in Guangdong Zhaoqing High-tech Zone. 
The revenue of Guangdong Hongtu has reached 225.9 million RMB and its net revenue reached 129 million RMB in 2015. Recently, the company has accelerated its expansion strategy to the automobile industry chain. In early July, the company has announced to fully acquire a plastic parts producer in Ningbo.