Longxiang Electric plans to invest in a new subsidiary of the foreign company, and the company holds 72%

On July 7, Capital State learned that the New Third Board Company Longxiang Electric (836070.NQ) issued an announcement for foreign investment and related transactions.

The announcement shows that according to the company's strategic planning and business development needs, Longxiang Electric plans to invest in Henan Longxiang Education Information Technology Co., Ltd., with a registered capital of 10 million yuan, 72%of the company's shares. Room 203, Longxiang Building, Henan Vocational College of Electrical and Electrical Vocational College, shall be subject to the approval of the Market Supervision and Administration Bureau.

The "Applicable Guidelines for the Application of M & A and Reorganization of the National Small and Medium Enterprise Transfer System No. 1 -Major Asset Reorganization" stipulates that "listed companies increase capital to wholly -owned subsidiaries or holding subsidiaries, and set up wholly -owned subsidiaries or holding subsidiaries, which does not constitute Major asset restructuring". Longxiang Electric holds 72%of the new subsidiary of the new subsidiary, which is the company's holding subsidiary. This transaction constitutes a connected transaction.

It is understood that the general projects of Nanlongxiang Education Information Technology Co., Ltd. include carbon reduction, carbon conversion, carbon capture, carbon sealing technology research and development; IoT technology services; energy storage technology services; information system integration services, etc.

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