Kunshan Kersen Science & TechKersen Technology plans to acquire 53.26% of Zhangu Technology for up to 500 million yuan, integrating precision metal manufacturing assets and broadening its product categories.

Kersen Technology recently disclosed an announcement that the company plans to acquire a controlling stake in Huizhou Zhangu Technology Co., Ltd. for no more than 500 million yuan. On September 28, Kersen Technology signed a framework acquisition agreement with Zhangu Technology, He Dongping, Zhang Yingwu, and Huang Weilong, intending to use no more than 500 million yuan of its own or self-raised funds to obtain 53.26% equity in Zhangu Technology through capital increase and equity transfer. Specifically, the company plans to use no more than 210 million yuan to increase capital in Zhangu Technology, holding 22.37% equity after the capital increase, and plans to use no more than 290 million yuan to acquire 30.89% equity held by He Dongping and Zhang Yingwu. Kersen Technology stated that its revenue structure is relatively concentrated in the consumer electronics sector, and its earnings stability is significantly affected by fluctuations in the downstream single industry. This transaction will further integrate high-quality assets and customer resources in the precision metal manufacturing sector, broaden product categories, and improve the industrial chain. Zhangu Technology was established in August 2014 with a registered capital of 25 million yuan, mainly engaged in the production and manufacturing of liquid cooling plate covers, flow channel parts, connector housings, manifold structural parts, CDU sheet metal and other products. The company cautioned that after the transaction is completed, Zhangu Technology will be included in the consolidated financial statements and is expected to generate a certain amount of goodwill. If its future operations undergo adverse changes, the goodwill will be subject to impairment risk.
Kunshan Kersen Science & TechKersen Technology plans to acquire 53.26% of Zhangu Technology for up to 500 million yuan, integrating precision metal manufacturing assets and broadening its product categories.
Zhangu Technology is the acquisition target, receiving up to 210 million yuan capital increase and having 30.89% equity acquired by Kersen Technology.