Guangxin Shares terminated the acquisition of 70% equity of Shixing and recovered 165 million yuan

On January 31, Guangxin Shares announced that the company held the 18th meeting of the fifth Board of Directors on January 30, 2024, to consider and pass the company's "Motion on rescinding the Equity Purchase Agreement"; The company signed a termination agreement with Wang Baoqin, Dong Guanglin and Liaoning Shixing.

According to the announcement, Guangxin Shares originally intended to acquire 70% of the equity of Liaoning Shixing held by Wang Baoqin for RMB 21,000.00 in cash, and Shixing will become the company's holding subsidiary after the completion of the acquisition. As of the disclosure date of the announcement, according to the Equity Purchase Agreement, the Company has actually paid 14,700.00 million yuan to Wang Baoqin.

During the performance of the contract, the business environment of Shixing has changed, and there are uncertain factors such as relocation risk of Shixing and its plant area. In order to control investment risks and safeguard the interests of the company, the company has reached a consensus with Wang Baoqin, Dong Guanglin and Liaoning Shixing, and signed a termination agreement. The parties unanimously confirm that: Liaoning Shixing through capital reduction to repurchase the company held Shixing’s equity amount of 14700.00 million yuan and pay the company 17.90.00 million yuan by way of directional dividend. The company recovered a total of 16490.00 yuan from the termination of the agreement.

The announcement said that the company's termination of the equity acquisition agreement is based on the current market environment and Shixing's own situation to make prudent decisions, reduce investment and operation risks, and focus on the main business development. After the completion of the industrial and commercial changes, Shixing will no longer be a holding subsidiary of the company and will no longer be included in the scope of the company's consolidated statements. The cancellation of the share purchase agreement will not have a significant impact on the company's continuing business ability and current financial position, and there is no situation that will harm the interests of shareholders of listed companies, especially minority shareholders.