Xiamen Cinda Transfers 3.3% Equity of Sanan Electronics

Xiamen Xinda announced on the evening of the 24th that the company will hold the shares of Xiamen Sanan Electronics Co., Ltd. ("Sanan Electronics") for not less than 322.63 million yuan, which is publicly listed and transferred at the Xiamen Property Rights Trading Center. More than 3.3%. The current counterparty is not yet certain.

Xiamen Xinda currently holds 6% equity of Sanan Electronics. Based on July 31, 2014 as the assessment date, the book value of the net assets of Sanan Electronics was -146.68 million yuan, the assessed value was 977,673,500 yuan, and the assessed value was 99,264,417 yuan.

On May 26, 2007, the board of directors of the company reviewed and approved 20 million shares of Sanan Electronics, which was held by Fujian Sanan Group Co., Ltd., for 150 million yuan. On January 22, 2008, the board of directors of the company reviewed and approved 5.5 million shares of Sanan Electronic Co., Ltd., which had been acquired by Fujian Sanan Group Co., Ltd. for the absorption and merger. At the same time, the company paid 4,563,916.20 yuan for a 10% increase in other net assets (excluding share capital) due to the merger and acquisition of Sanan Electronics. After the above equity transfer is completed, the company holds a 10% equity interest in Sanan Electronics, which has survived the merger. On June 28, 2013, the company listed and transferred 4% equity of Sanan Electronic Co., Ltd. for 251,041,922.76 yuan. After the equity transfer was completed, the company held 6% equity of Sanan Electronics.

Xiamen Cinda stated that the transfer of Sanan Electronic’s partial equity will help the company to activate its assets, recover funds, reduce financial costs, and expand other viable projects.

The transfer of equity in Sanan Electronics will use the form of an intentional transferee listed on the Xiamen Property Rights Trading Center, and the transaction counterparty and the transaction price are uncertain. The transaction still needs to be submitted to the company's general meeting of shareholders for review. The total amount of equity assets, operating income, and net assets of the current transfer have not reached the standard for major asset restructuring and does not constitute a major asset reorganization.