Zhejiang Tiancheng Controls Co., Ltd. (SHSE:603085) agreed to acquire 48% stake in Changsha Adient Automotive Component Co., Ltd. for CNY 10.6 million on May 18, 2024. Zhejiang Tiancheng is intending to use its own funds for the acquisition. Zhejiang Tiancheng will have 2 director seats out of the 5 directors of Changsha Adient.

At the same time, Zhejiang Tiancheng signed a relevant "Joint Venture Contract" with the controlling shareholder of Changsha Adient, GAC Auto Parts Co., Ltd., to reach an agreement on the future development direction, internal governance structure and business plan of Changsha Adient. Changsha Adient reported total assets of CNY 120.8 million, net assets of CNY 5.1 million, operating income of CNY 2.2 million and net loss of CNY 6.7 million on March 31, 2024. The transaction has been reviewed and approved at the eighth meeting of the fifth board of directors of Zhejiang Tiancheng and needs to be submitted to the shareholders' meeting of Zhejiang Tiancheng for review and approval.

The transaction is also subject to the operator concentration review by the national antitrust enforcement agency. As of June 4, 2024, the transaction has been approved by shareholders of Zhejiang Tiancheng Controls.