Datong Machinery (00118) subsidiary plans to sell all shares in Hefei Datong Grand Plastics for 48 million yuan

Zhitong Finance App News, Datong Machinery (00118) issued an announcement. On August 13, 2026 (after the trading period), the seller Grand Technology Products Co., Ltd. (an indirect wholly-owned subsidiary of the company) signed an equity transfer agreement with the buyer Hefei Grandview New Materials Co., Ltd. According to this, the seller has agreed to sell at a cost of 48 million yuan, and the buyer has agreed to acquire all of the shares of the target company Hefei Datong Grand Plastics Co., Ltd.

Weak terminal market demand in the domestic home appliance industry, combined with the downturn in consumption and the normalization of price wars, have put long-term pressure on target companies' profit margins. Although management has reduced labor costs and waste through optimized production processes and intelligent management, the sharp rise in plastic raw material prices in the first half of 2026 further reduced profitability.

Given that the target company is only a factory specializing in plastic parts processing for home appliances, its single processing business model lacks prospects for sustainable growth under the influence of these adverse factors (this situation is reflected in the target company's profit decline for the past three consecutive years). The Group has also considered the potential costs and management resources required to liquidate the target company, as well as the intention of third parties to the target company's business. As a result, the Group decided to sell the target company to reallocate resources to other business segments with potential for growth, thereby enhancing the Group's overall competitiveness.