What are you doing? Yunnei Power acquired 100% equity of Jianghuai Chaochai!

On January 9, 2019, Kunming Yunnei Power Co., Ltd. (hereinafter referred to as “Yunai Power”) announced the acquisition of 100% equity of Hefei Jianghuai Chaochai Power Co., Ltd. (hereinafter referred to as “Jianghuai Chaochai”) through public delisting. Announcement, the transaction price does not exceed RMB 87.76 million.

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Yunnei Power said that this move is to expand the market share of the company's products in the central and eastern regions (especially in East China), further strengthen the market voice of the company's engine products in the four-cylinder machine industry, and enhance the overall profitability of the company.

It is understood that after the completion of this acquisition, Jianghuai Chaochai will become a wholly-owned subsidiary of Yunnei Power. Yunnei Power can use the advantage of Jianghuai Chaochai and Jianghuai Automobile to supply engines to the East China host factory (Jianghuai Automobile), reducing Logistics costs thus increase the profitability of the company's products.

After the completion of the acquisition, it marks that Yunnei Power has officially entered the East China market. The company can make full use of the location advantage of Jianghuai Chaochai and further leverage the brand advantage, management advantages and technological advantages of Yunnei Power in small displacement four-cylinder diesel engines. Achieve profitability and further develop the market in the central and eastern regions.

Reading volume: Source: China Securities Network Author: Cold autumn

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