On the evening of September 4th, Zhongcong Technology issued an announcement saying that in order to further improve the strategic layout of globalization, rapidly promote the development process of overseas business, effectively respond to changes in the international situation, expand international business, quickly respond to customer needs, and strengthen close cooperation with international customers, the company intends to set up four overseas wholly-owned subsidiaries through the overseas investment holding platform Zhongcong International Holdings. The total investment amount is 1.744 billion yuan (equivalent to about 240 million US dollars), which is funded by the company’s GDR funds.

Changjiang Business Daily reporter noted that in April 2023, Zhongkong Technology completed the issuance of GDR and listed on the Swiss exchange, raising a total amount of about 565 million US dollars, and the total investment of the four wholly-owned subsidiaries of Zhongkong Technology set up this time accounted for about 42.5% of the total amount of GDR raised by the company.

It is noteworthy that since 2023, China Control technology has achieved a number of major breakthroughs in overseas markets. In the first half of 2023, the company achieved new overseas contracts of 304 million yuan, an increase of 109.6%.

The investment amount accounted for 42.5% of the total amount raised by GDR

According to the plan, the company intends to set up four overseas wholly-owned subsidiaries through the overseas investment holding platform Zhongcong International Holdings.

The specific plan is that China Control Technology invests 727 million yuan (equivalent to about 100 million US dollars) in China Control Manufacturing (Malaysia), 218 million yuan (equivalent to about 30 million US dollars) in China Control Manufacturing (Saudi Arabia), and 727 million yuan (equivalent to about 100 million US dollars) in China Control International. Invested 72.65 million yuan (equivalent to about 10 million US dollars) in China Control Technology (Kazakhstan), with a total investment of 1.744 billion yuan (equivalent to about 240 million US dollars).

In terms of the specific division of business, the Zhongkeng Manufacturing (Malaysia) to be established by Zhongkeng Technology is intended to be the production and manufacturing center for automatic control systems, instruments and electrical equipment set up by Zhongkeng Technology in Malaysia, so that Zhongkeng Technology can better cultivate the Southeast Asian market and promote products to a broader overseas customer base.

China Control Manufacturing (Saudi Arabia) intends to be the production and integrated manufacturing base of automation control system, analyzer hut, robot and Internet of things equipment set up by China Control Technology in Saudi Arabia. China Control Technology will join hands with the head energy enterprises in the Middle East to build an advanced intelligent manufacturing base in the Middle East, and take the oil and gas and petrochemical customers represented by Saudi Aramco as the key breakthrough direction. Expand business in the Middle East and Africa, and further expand the scale of the company’s international business.

As the overseas operation center of Zhongcon Technology, Zhongcon International intends to coordinate the management of the company’s overseas business, focusing on the research and development of cutting-edge technologies in automation control system, industrial software, AI and other related fields, aiming to focus on building an overseas operation center, coordinate the management of Zhongcon technology’s overseas business, and improve the company’s global layout.

In addition, China Control Technology (Kazakhstan) plans to connect with the business in Central Asia, establish the operation center in Central Asia, expand the influence of the company’s brand in Central Asia, and build a benchmark demonstration site in Central Asia.

Changjiang Business Daily reporter noted that the source of capital for the foreign investment of China Control Technology was the company’s GDR. According to the data, in November 2022, Zhongkong Technology began to plan for GDR issuance, and the purpose of issuance is to deepen and expand the company’s overseas layout and international financing channels.

After obtaining the relevant approval, in April 2023, Zhongkong Technology issued 20,958,000 GDRS at A price of $26.94 per GDR. representing 41.916 million A-shares of the underlying securities, raising a total of about $565 million. On April 17 (Swiss time), the GDR issued by Zhongcong Technology was officially listed on the Swiss exchange. The total investment of the four overseas wholly-owned subsidiaries set up by Zhongkong Technology this time accounts for about 42.5% of the total amount of GDR raised by the company.