Xiaosong Co., Ltd. plans to acquire Foshan Pushi to improve the company’s own brand product matrix

Recently, Xiaosong Shares issued an announcement announcing that its wholly-owned subsidiary Guangdong Jinlaite Intelligent Technology Co., Ltd. will acquire 100% of the equity of Foshan Push Intelligent Electric Co., Ltd. (hereinafter referred to as "Foshan Push") held by natural person shareholders Yuan Chutian and Li Fan in cash. The transaction amount is 38 million yuan.

After the completion of this transaction, Xiaosong Co., Ltd. will hold 100% of the equity of Foshan Pushi, and Foshan Pushi will become a wholly-owned subsidiary of Xiaosong Co., Ltd.

According to the announcement, Foshan Pushi was established in 2019. Since its establishment, the company has focused on the research and development and sales of heat pump products. The company's products are all independently developed and can realize independent design of heat pump hardware and independent writing of control software. Foshan Push's business is currently distributed in Europe, South America, Asia and other countries and regions, especially in the Australian market. Due to its outstanding energy-saving effect, heat pump products are favored by local consumers.

It is reported that heat pump products are high-efficiency energy-saving devices that make full use of low-grade thermal energy. They are an energy-saving means of converting electricity into heat. They play an important role in reducing greenhouse gas emissions, achieving climate change control and energy structure transformation. They are widely used in household and commercial heating, cooling, and hot water fields.

In terms of performance, from January to September 2022 and 2023, Foshan Push achieved operating income of 25.8022 million yuan and 42.0122 million yuan respectively, and net profits of 1.7014 million yuan and 3.7278 million yuan respectively.

As of the assessment base date of September 30, 2023, under the conditions of going concern, Foshan Pushi's audited book value of total assets is 13.817 million yuan, the book value of total liabilities is 7.7144 million yuan, and the book value of net assets is 6.1026 million yuan. After evaluation using the income method, the value of all Foshan Puxi shareholders' equity is 38.3043 million yuan.

Xiaosong Co., Ltd., formerly known as Guangdong Jinlaite Electric Co., Ltd., was established in 2007 and went public in 2014. At that time, its main business was rechargeable backup lighting products and rechargeable AC and DC fans. In recent years, Jinlaite has continued to invest in the healthy home appliances industry, and its mid- and long-term development plans focus on the dual main business development directions of small home appliances + engineering construction.

Xiaosong Co., Ltd. said that the smooth development of the heat pump business will help the company's traditional home appliances to upgrade in the direction of "high customer unit price and high added value", and further improve the company's own brand product matrix, which will bring new profit growth points to the company and enhance the company's comprehensive competitiveness.