Recently, Zhejiang Linuo (300838) announced the signing of an Investment Agreement with Longyou Crete Machinery and equipment Co., Ltd. (hereinafter referred to as "Crete Machinery") and related parties. According to the terms of the agreement, Zhejiang Linuo plans to take a 51% stake in Crete Machinery in the form of a capital increase and indirectly hold a 51% stake in Crete Group. The purpose of this move is to obtain access qualifications for relevant industries, and then broaden the industrial chain.

Recent informationMobilephonecasinoZhejiang Linuo disclosed the investment plan on the evening of April 21, with a total capital increase of 2456Mobilephonecasino.33 million yuan. This move is intended to indirectly take control of the Crete Group through holding Crete Machinery, so as to enhance the company's technical strength and market competitiveness in the field of high-pound valves.

Financial status: Crete Machinery promised net profits of 5 million yuan, 13 million yuan and 22 million yuan respectively between 2024 and 2026. If the expected performance is not achieved, Crete Machinery shareholders Li Yongguo and Wu Shengzhong will compensate with their shares. In addition, Zhejiang Linuo's revenue in 2023 was 1.111 billion yuan, an increase of 9.71 percent over the same period last year, and its net profit was 107 million yuan, an increase of 0.24 percent over the same period last year.

Operation status: Crete Machinery is a newly established enterprise whose main business is carried out through Crete Group, a wholly-owned subsidiary acquired in February this year. Crete Group, founded in 2009, is an enterprise with profound technical background and rich customer resources in the high-end valve segment market. Crete Group serves large state-owned enterprises such as PetroChina, Sinopec and CNOOC, and has a number of industry access qualifications.

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