LY iTECH plans to acquire 96.15% equity of Zhejiang Xianglong for 2.404 billion yuan to accelerate the deepening of its automotive industry layout

According to the Zhitong Finance APP, LY iTECH (002600.SZ) announced that its wholly-owned subsidiary LY Technology (Shenzhen) Co., Ltd. (“LY Technology”) will acquire a total of 96.15% equity in Zhejiang Xianglong Machinery Co., Ltd. (“Zhejiang Xianglong”) held by Venture Equities Management, Ningbo Jialong, Hangzhou Xiebang, and Ningbo Longjun for a cash price of 2.404 billion yuan. Upon completion of this transaction, LY Technology will hold 96.15% equity in Zhejiang Xianglong, which will be included in the company's consolidated financial statements.

It is reported that Zhejiang Xianglong is an automotive parts manufacturer specializing in the research and development, manufacturing, and sales of automotive drive shafts and transmission shafts. Its customers widely cover well-known domestic and international manufacturers of new energy and fuel vehicles, as well as leading global all-terrain vehicle brands. The purpose of this transaction is to accelerate the deepening of the company's layout in the automotive industry, improve its product matrix in the automotive field, further enrich its revenue structure, achieve industrial upgrading and optimization, and provide a foundation to meet the trends of electrification and intelligent development in the automotive sector, as well as to explore the expanded application of AI terminal hardware