Beijing Zhong Ke San Huan High-Tech Co.,Ltd. (000970.SZ) has announced that it is planning to acquire a controlling stake in Ningbo Zhongdian Cisheng Electronics Co., Ltd. (referred to as "Zhongdian Cisheng") through a cash transaction.

The target company primarily engages in the research, development, production, and sale of rare earth permanent magnet material application devices, focusing on the technical development of magnetic device end-use applications. Its products are mainly used in consumer electronics, automotive, and industrial motors.

It is understood that the target company is a minority shareholder of the listed company's subsidiary, Ningbo Sanhuan Cisheng Industry and Trade Co., Ltd., and possesses complementary synergies with the company in terms of technology, products, and markets.

Following the acquisition, the equity structure of the subsidiary will be further optimized, and it will help drive a comprehensive upgrade of the company's industry chain value.