On 20 January 2023, the reorganization project of Wuxi Zhenhua Auto Parts Co., Ltd. (605319.SH, “Wuxi Zhenhua”) was passed and approved by China Securities Regulatory Commission. 

Wuxi Zhenhua intends to issue shares and pay in cash to buy 100% equity of Wuxi Zhenhua Kaixiang Technology Co., Ltd. held by QIAN Jinxiang and QIAN Ben, the actual controllers, and raise funds through non-public offering to no more than 35 specific investors. Wuxi Kaixiang, the subject of this transaction, is mainly engaged in the research, development and manufacture of selective precision plating products, which are currently used in the selective precision chrome plating treatment of parts related to gasoline engine high pressure electric injection system, and is the only domestic supplier of UAES in the field of engine high pressure electric injection system chrome plating. After the reorganization, Wuxi Zhenhua will acquire a new engine parts core business layout to optimize the existing business system and become a more competitive auto parts industry group.

Grandall Shanghai has been retained by the company as the legal advisor for this reorganization project with LIU Wei, LIN Lin, and CHEN Jie as key lawyers serving the case.