Huitongda (9878) has released further details regarding its acquisition of a 25% equity interest in the Target Company. This transaction follows prior announcements dated September 5, 2025, and February 3, 2026, which outlined a Restructuring Investment Agreement and subsequent approval of a Restructuring Plan by the creditors’ meeting. The Target Company’s restructuring procedure has been completed, and on February 13, 2026, the court lawfully terminated the Target Company’s prior restructuring. The Target Company has finalized the transfer of 25% of its equity interest into Huitongda’s designated securities account.
According to the announcement, the Target Company specializes in fluid machinery, including blowers, compressors, turbines, and other industrial products that serve sectors such as wastewater treatment, food processing, and textile production. Huitongda, focusing on rural family-run businesses through digital technologies and supply chain capabilities, views this investment as a strategic step to strengthen supply chain control, expand product offerings in rural markets, and integrate its digital services within manufacturing operations.
Huitongda highlights several potential benefits of the deal. These include enhanced bargaining power with upstream manufacturers, greater product and service offerings for rural markets, and the integration of high-end manufacturing experience. Moreover, combining digital tools with industrial processes is expected to expand Huitongda’s digital services beyond its existing customer base.
In addition, Huitongda anticipates optimizing financing channels and tapping into both A-share and H-share market resources. The company’s board states that the transaction agreements are on normal commercial terms and in the best interests of both the company and shareholders. Huitongda will nominate a majority of the board seats of the Target Company and appoint key management personnel, consolidating its role in guiding the Target Company’s daily operations and strategic decisions.
Huitongda advises shareholders and potential investors to exercise caution when dealing in its securities.