Xinzhu Corporate Shares Transferred to Sichuan Development

Apr 24, 2018   //   News

On April 12, Xinzhu Corporate and Sichuan Development held a signing ceremony on Xinzhu’s share transfer agreement in Chengdu, Sichuan. Sichuan Development agreed to acquire 16% of the shares held by Xinzhu Group and became the controlling shareholder of Xinzhu Corporate.

Deputy governor of the Sichuan Yuxing Peng, deputy director of the Standing Committee Guangzhi Chen, secretary of Assets Supervision and Administration Commission Jin Xu witnessed the signing testimony; Sichuan Development, Xinjin County Government, Xinzhu Corporate and the company’s other leaders attended the signing ceremony.

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The railways transit industry has a high technological content and a wide range of driving factors. It is a strategic emerging industry that the state strongly supports economic development. It is also one of the ten essential areas of development that is clearly defined in Made in China 2025. Sichuan Province will focus on the development of the railways transit industry, and will take the modern tram system, the second-generation HSST system, and the new railways transit system as the guiding direction, striving to build Sichuan Province into an “industry-led, world-class” railways transit industry altitude.

As a listed company, the company has been engaged in research and development production and sales of rail transit, engineering components, new energy vehicles and super capacitors for many years. Among them, engineering components and supercapacitors are in the leading position within the industry; the urban railways transit industry, which is developing vigorously, has introduced the world-class new generation of HSST systems from Germany’s Max Bögl, which will provide important support for Xinzhu’s subsequent development.

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Mr. Xu pointed out in his speech that Sichuan Development and Xinzhu Corporate signed an equity transfer agreement, which is a strong alliance between provincial state-owned enterprise and private enterprise, which is conductive to promote provincial state-owned enterprises to deepen reform, transformation and development. Mr. Xu expressed that we can give full play to the respective advantages of both sides and jointly promote the development of the modern railways transit industry in our province, strengthen and expand, and enhance the support of the province’s industrial development. He hoped that the two sides will uphold the principle of mutual benefit, win-win and coordinated development, and take advantage of Sichuan’s development policies, resources, capital, scale effect, etc., as well as the advantages of the flexible construction system, strong technical strength and rich operational experience of the new construction group, and stimulate the vitality and creation of both enterprises, in order to achieve complementary advantages and common development, and to become a living force to promote economic transformation and upgrade, and to achieve high-quality development.

President of Sichuan Development Fengchao Wang, and Xinzhu Corporate’s president Zhiming Huang delivered remarks on behalf of both signing representatives.

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President Fengchao Wang said in his speech that Sichuan Development is a state-owned capital operation platform for the financial support, industrial investment guidance and enterprise reform and development of the provincial party committee and the provincial government. It is responsible to lead the development of strategic industries, new economic support and new kinetic energy. Based on the good prospects for the development of the railways transit industry and Xinzhu Corporate, Sichuan Development will acquire Xinzhu Corporate’s shares and will actively use its own resources to help the development of Xinzhu Corporate, becoming an example of Sichuan in leading enterprise in domestic competition and world-class benchmarking enterprise in the railways transit industry.

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President Zhiming Huang said in his speech that Xinzhu Corporate has long been committed to the public transportation industry. With the support and help of local governments and partners at all levels, after more than a decade of development, it has formed a full core competitiveness in research and development, manufacturing and production of public transportation products, system integration and life cycle services, which has laid a solid foundation for the development of the company. The successful signing will strongly promote the rapid growth of Xinzhu Corporate, through the effective integration of Sichuan’s resource platform and the advantages of the new construction industry.

After this acquisition, taking Xinzhu as an important platform for the development of railways transit industry, taking a new generation of HSST system as an important starting point, both sides will build a multi-standard product chain with international competitiveness and high performance, seize the leading position of the development in new-type railways transit industry, and accelerate promoting the leading development of the Sichuan railways transportation industry.

Sichuan Provincial State-owned Assets Supervision and Administration Commission issued a written document approving to the transfer of the shares on April 20th, 2018.

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