National Manufacturing Transformation Promotion Fund Co., LTD. (hereinafter referred to as the “National Manufacturing Fund”) once again to layout the manufacturing leader, this time is China’s leading industrial robot enterprise Estun.

On the evening of December 26th, Eston announced, The company’s holding subsidiary, Estun Intelligent Technology (Jiangsu) Co., LTD. (hereinafter referred to as “Estun Jiangsu Intelligent”), intends to introduce strategic investors General Technology high-end Equipment Industry Equity Investment (Tongxiang) Partnership (Limited partnership) (hereinafter referred to as “General Technology High-end Equipment Fund”) and National Manufacturing Transformation and Upgrading Fund Co., LTD. (hereinafter referred to as “National Manufacturing Fund”) Increase capital and shares.

S20360-SRS According to the disclosure, all parties confirmed that the pre-investment valuation of Eston Jiangsu Intelligent Investment was 510 million yuan. The investor subscribed for the new registered capital of the target company at the price of 2.55 yuan /1 yuan of registered capital. The investor subscribed for the new registered capital of the target company at a total of 380 million yuan (including 200 million yuan from the General technology high-end Equipment Fund and 180 million yuan from the National Manufacturing Fund). It accounts for 42.69% of the registered capital of the target company after the completion of this capital increase, and the remaining part is included in the capital reserve.

The capital increase will be used for business expansion, capital expenditures, supplementary working capital and other purposes agreed to in writing by the investor.

Eston and other former shareholders of Eston Jiangsu Intelligence will waive their pre-emptive S20360-SRS rights for this capital increase. After the completion of this capital increase, the registered capital of Eston Jiangsu Intelligence will increase from 200 million yuan to 349 million yuan, the proportion of listed companies holding Eston Jiangsu Intelligence will change from 90.95% to 52.12%, Eston Jiangsu Intelligence will remain a holding subsidiary of the company, and will continue to be included in the scope of the company’s consolidated statements.

The market is no stranger to state manufacturing funds. Established in 2019, the fund mainly focuses on the growth and maturity of enterprises in the fields of new materials, new generation information technology, electric power equipment, high-end CNC machine tools and basic manufacturing equipment, industrial robots, core parts and components, key instruments and meters, aerospace and new energy vehicle industry chain to carry out strategic investment, and layout of related manufacturing leaders. The A-share listed companies that have participated in the investment include Cord Numerical Control, Rifa Precision Machine, Genesis and so on.

S20360-SRS

The General Technology high-end equipment Fund was established in 2021, the main partner Zhong, China General Technology (Group) Holding Co., Ltd. contributed 31.8%, the National Manufacturing Transformation and Upgrading Fund Co., Ltd. contributed 30%, Tongxiang Jinxin Equity Investment Co., Ltd. contributed 20%. China’s state-owned Enterprise Mixed Ownership Reform Fund Co., Ltd. contributed 18 percent, and General Technology Venture Capital Co., Ltd. contributed 0.2 percent.

For the governance structure of Eston S20360-SRS Jiangsu Intelligence, the parties agree that the shareholders’ meeting of the target company shall be formed by existing shareholders and investors after the closing date. The board of directors is composed of three directors, Eston has the right to nominate two directors, and General Technology High-end Equipment Fund has the right to nominate one director. The term of office of the directors shall be three years, and they may be re-elected at the end of the term. There are three members of the Supervisory Board. Eston has the right to nominate 2 supervisors and the National Manufacturing Fund has the right to nominate 1 supervisor. The term of office of a supervisor shall be three years. At the end of his term, he may be re-elected.

The announcement also disclosed that the parties agreed that Eston as the repurchase obligor, in any of the following circumstances, the investor has the right but not the obligation to request the repurchase obligor at any time. Among them, Eston Jiangsu Intelligence did not complete the asset securitization before September 30, 2027 (the asset securitization of the target company includes qualified listing and issuing shares to purchase assets in two ways); Without the permission of the investor, there is a major deviation from the construction or operation of the project (including the change of the main business or main product, and the funds are not used for the S20360-SRS project) and it is not corrected after the written notice of the Investor, or it is unable to continue operation; Eston Jiangsu Intelligence or Eston actual control changes, etc.

Eston believes that the capital increase introduced by Eston Jiangsu Intelligence into the general technology high-end equipment fund and the National manufacturing fund, on the one hand, optimized the equity structure, obtained high-quality industrial resources with the platform advantage of the national fund, formed the synergistic effect of capital and the industrial chain, and jointly promoted the rapid development of China’s intelligent manufacturing industry; On the other hand, this capital increase helps to supplement the funds needed for business development, accelerate the capacity construction and market development of Eston Jiangsu Intelligence, further enhance the market competitiveness, and promote its rapid and steady development, which is in line with the long-term strategic development goals of the company and Eston Jiangsu Intelligence.

The company said that the waiver of the pre-emptive right of Eston Jiangsu Intelligence to increase capital is based on the company’s overall strategic planning, combined with the comprehensive consideration of Eston Jiangsu Intelligence’s own development needs and capital operation planning, after the completion of the capital increase, Eston Jiangsu Intelligence will remain a holding subsidiary of the company, and will not lead to changes in the scope of the company’s consolidated statements. It will not have a material impact on the company’s financial and operating conditions.