Li Jingquan agreed to acquire 59.9% stake in Xinjiang Luthai Fengshou Cotton Co., Ltd from Lu Thai Textile Co., Ltd. for approximately CNY 200 million.
August 13, 2020
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Li Jingquan agreed to acquire 59.9% stake in Xinjiang Luthai Fengshou Cotton Co., Ltd from Lu Thai Textile Co., Ltd. (SZSE:200726) for approximately CNY 200 million on August 13, 2020. Li Jingquan will pay by its own raised funds, and shall pay in four installments from August 31, 2020 to July 31, 2022. Li Jingquan held 11.75% stake of Xinjiang Luthai Fengshou Cotton Co., Ltd before this transaction. As of December 31, 2019, Xinjiang Luthai Fengshou Cotton Co., Ltd had total assets of CNY 935 million, net assets of CNY 48.5 million, revenues of CNY 724 million and net profit of CNY 248.8 million. The transaction has been approved by the 16th meeting of the 9th directorate of the company.
LU THAI TEXTILE CO., LTD is a China-based company principally engaged in textile fabric business. The Company operates through the textile and garment industrial chain, including cotton breeding, spinning, bleaching and dyeing, neatening, testing, garment making and marketing. The Company is involved in the production and distribution of middle and high-grade yarn-dyed fabric and dyeing fabric for shirts and garment. The Company distributes its products within domestic market and to overseas markets, such as Japan, Southeast Asia, the United States and Europe, among others.
Li Jingquan agreed to acquire 59.9% stake in Xinjiang Luthai Fengshou Cotton Co., Ltd from Lu Thai Textile Co., Ltd. for approximately CNY 200 million.