Hefei Snowky Electric (001387.SZ) plans to acquire a controlling stake in Shengbang Electric, extending its reach to the upstream of the industrial chain.

Hefei Snowky Electric (001387.SZ) Announcement: The company intends to acquire 65% equity of Hefei Shengbang Electrical Appliance Co., Ltd. ("Shengbang Electrical") for RMB 47.45 million, and to subscribe to RMB 12.16667 million for the target company's RMB 41.6667 million in newly increased registered capital. After the completion of the transaction, the company will hold 70% equity of the target company and become the controlling shareholder of Shengbang Electrical. The announcement shows that the target company is mainly engaged in the research, development, production, and sales of specialized accessories and molds for household electrical appliances such as refrigeration components, pipeline components, and metal structural components. Its products are used in household appliances such as refrigerators, washing machines, air conditioners, as well as in light commercial fields such as display cabinets, cabinets, beverage cabinets, and ice makers. Hefei Snowky Electric mainly produces products such as large-volume refrigerators with a capacity of 400L and above and commercial display cabinets. The target company is a supplier that has cooperated with Hefei Snowky Electric for many years. The purpose of this transaction is to promote Hefei Snowky Electric's extension and expansion towards the upstream of the industrial chain, achieve coordinated cooperation between upstream and downstream, and improve the stability and reliability of components. At the same time, it can reduce procurement costs and enhance the company's profitability.