DaTong Machinery plans to sell all of its equity in Hong Kong Bangji and Shenzhen Bangji.

Intelligent Finance News APP reported that Datong Machinery has announced that on October 16, 2023, the seller (an indirectly non-wholly-owned subsidiary of Bangji Industrial (Holdings) Co., Ltd.) and the buyer I (Anbo Circuit Board Co., Ltd.) have entered into a memorandum of understanding and a purchase and sale agreement I, and Shenzhen Bangji and buyer II (Heshan Anbo Circuit Board Factory Co., Ltd.) have entered into a purchase and sale agreement II. The seller will sell, and buyer I and buyer II will respectively purchase Hong Kong Bangji shares and Shenzhen Bangji equity for a consideration of HKD 1 and approximately RMB 137 million (subject to price adjustments). Hong Kong Bangji and Shenzhen Bangji are indirectly non-wholly-owned subsidiaries of the company. The main business of Hong Kong Bangji is the trading of printed circuit boards, while the main business of Shenzhen Bangji is the processing of printed circuit boards. After the delivery, the group will no longer have any equity interests in the Bangji subsidiaries. Faced with difficulties and a volatile market environment, the sale provides the group with an opportunity to exit the printed circuit board manufacturing business and allows the group to concentrate its resources on other business sectors with more positive cash flow potential, thereby enhancing the group's financial position.