According to the Financial Associated Press on December 12 (Reporter Chen Kang), Harson Trading(China)Co. (603958.SH), engaged in the production and sales of mid-to-high-end leather shoes, has a strong intention to cross into industrial intelligent manufacturing in the past six months, and actions have been swift. The company announced tonight that it is planning to acquire 100% equity of Chenling Optical and 45% equity of Suzhou Langkes through issuing shares or a combination of issuing shares and paying cash, while also planning to issue shares to raise matching funds.

After the completion of the trade, the company will directly hold 100% equity of Chenling Optical and will have direct and indirect control over 100% equity of Suzhou Langkes.

In order to gain 100% controlling interest in Suzhou Langkes, Harson Trading(China)Co. took a two-step approach and decisively adjusted the acquisition plan twice. In January this year, the company initially proposed a major asset restructuring plan, intending to acquire 45% of Suzhou Langkes' equity, 90% of Jiangsu Langxun's equity, and a 23.0769% stake in Suzhou Yeyu through issuing shares and paying cash. Six months later, Harson Trading(China)Co. made a significant first adjustment to the restructuring plan, changing it to propose acquiring 87% of Suzhou Langkes' equity, 90% of Jiangsu Langxun's equity, and 23.0769% of Suzhou Yeyu's stake by issuing shares, as well as raising matching funds.

Two months later, the company adjusted the plan again. On September 14, Harson Trading(China)Co. terminated the major asset restructuring and changed to a cash acquisition of assets, purchasing 45% equity of Suzhou Langkes and 55.2% equity of Jiangsu Langxun for a total of 0.358 billion yuan in cash. The company stated that this change was to "accelerate the transaction process, improve transaction efficiency, and reduce transaction costs," highlighting the urgency of the crossover.

In the announcement on the evening of November 26, the company stated that the above transaction has completed the equity delivery, and the company directly holds 45% equity of Suzhou Langkes, while indirectly holding 10% equity of Suzhou Langkes through Jiangsu Langxun (a total of 55% equity).

Suzhou Langkes Precision Hardware Co., Ltd. was established in March 2018 and mainly engaged in the research, development, production, and sale of precision metal structural parts. Public information shows that this company mainly provides contracted processing services for structural parts such as mobile phone frames to "fruit chain" manufacturers, and the business is gradually expanding to other mobile phone manufacturers.

In the announcement tonight regarding the other acquired company, Chenling Optical, the business scope includes the manufacturing of optical instruments, AI Application software development, research and development of intelligent robots, software development, and manufacturing of industrial robots. According to the company's official WeChat account, the annual sales in 2023 exceeded 0.2 billion.

Harson Trading(China)Co. focuses on brand operation, product design, production, and sales of mid-to-high-end leather shoes. In the first three quarters of 2024, the company achieved revenue of 0.568 billion yuan, a year-on-year decrease of 0.92%; the net income attributable to the parent company was a loss of 41.4347 million yuan, a year-on-year decline of 8406.06%. The company's net income has consistently been in loss since 2020, with the booming Consumer Electronics market becoming a hope for the company to seek a performance turnaround.

The announcement shows that Harson Trading(China)Co.'s Stocks have been suspended from trading since the market opened on December 12 (Thursday) and will continue to be suspended from trading from December 13, 2024 (Friday), with the suspension time expected not to exceed 10 trading days.