Based on the company's business development needs, Zhonghuan Co., Ltd. plans to acquire 100%equity of Opart

On July 20, 2022, Zhonghuan (836260.bj), a listed company of the Beijing Stock Exchange, issued an announcement for the purchase of assets.

The announcement shows that based on the needs of the company's business development and expansion business, the company plans to acquire 100%equity of Chengdu Opart Control Valve Co., Ltd. (hereinafter referred to as "Opart" or "target company") at a price of RMB 4.284 million Essence

Opart currently has two natural person shareholders, which is Hong Liang and Zeng Junli, a natural person. Among them, Shi Hongliang holds 36%of the shares and Zeng Junli holds 64%. Opart was established on September 26, 2008. It has a registered capital of RMB 10 million. The legal representative is the teacher Hong Liang, and the registered address is No. 7, No. 7, Keyuan South Road, Chengdu High -tech Zone.

The main business of Opart is to design, produce and sell fluid control products on petroleum, chemical, natural gas, and metallurgy. It is mainly self -controlled valves, including pneumatic direct control valves, pneumatic butterfly valves, and pneumatic V -type ball valves. After the equity transfer is completed, the company holds 100%equity in Opart.

The company's 100%equity of the company purchased the bid for this time was 4.284 million yuan, and the target company's operating income in 2021 was 1.7461 million yuan. As of April 30, 2022, the total assets of the audited period were 4.8518 million yuan, and the amount of net assets was 3.8414 million yuan. The total amount of the transaction amount is lower than the final assets of the benchmark company on the target company.

The total assets at the end of the target company accounted for the company's 2021 audited financial accounting statement. The total assets at the end of the period were 1.02%of the total assets of 47,349,200 yuan. The ratio of 21,453,800 yuan was 0.81%.

In summary, the purchase of assets has not reached the relevant standards of major asset reorganizations such as the "Administrative Measures for the Reorganization of Major Asset Reorganizations" and "Beijing Stock Exchange Listed Companies of the Beijing Stock Exchange". It does not constitute a major asset reorganization.

The company held the ninth meeting of the third board of directors on July 18, 2022 to review and approve the "Proposal on the acquisition of 100%equity of Chengdu Opart Control Valve Co., Ltd.".

According to Zhonghuan, the main business of Opart is to design, produce and sell fluid control products on petroleum, chemical, natural gas, and metallurgy. It is mainly self -controlled valves, including pneumatic direct control valves, pneumatic butterfly valves, and pneumatic V -shaped ball valves.

Through this acquisition, the company can enrich product types, expand market share, and further enhance comprehensive competitiveness, and meet the company's overall development strategic planning. This transaction is conducive to the future development of the company's business and will have a positive impact on the expansion of the company's subsequent business.

It should be noted that this transaction is based on the company's long -term interests and strategic planning, and there may be certain market risks, business risks and management risks.

The company will improve various internal control systems, strengthen the supervision and control of subsidiaries management and operation, clarify operating strategies and risk management, actively prevent and cope with possible risks, and strive to ensure the company's security and maximum return of this transaction.

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