On August 6, Weichai Heavy Machinery Co., Ltd. (hereinafter referred to as “Weichai Heavy Machinery”) issued the “Announcement on the Acquisition of 100% Equity of Changzhou FRP Shipyard Co., Ltd. and Related Transactions”.
The announcement disclosed that Weichai Heavy Machinery plans to pay cash to purchase 100% of the equity of Changzhou FRP Shipyard held by its controlling shareholder Weichai Holding Group Co., Ltd. The transaction price is approximately RMB 492 million (approximately US$69 million).
Weichai Heavy Machinery stated that upon completion of this transaction, Changzhou FRP Shipyard will become a wholly-owned subsidiary of the company and will be included in the company’s consolidated financial statements. As of the date of this announcement, Changzhou FRP Shipyard had a registered capital of RMB 630 million, of which RMB 230 million was paid-in capital. The company will fulfill its obligation to pay the remaining unpaid capital, and will subsequently arrange for payment or reduction of capital based on Changzhou FRP Shipyard’s actual operational and development needs.
Weichai Holding Group is the controlling shareholder of Weichai Heavy Machinery. This transaction constitutes a related party transaction but does not constitute a major asset restructuring.
The announcement shows that this transaction is for Weichai Heavy Machinery to improve its industrial layout, expand its boat business segment, create new business growth points, enhance the company’s overall competitiveness and further expand its revenue sources.
Changzhou FRP Shipyard’s main business is the research and development and production of various types of boats under 30 meters, including composite materials, steel, aluminum, etc., and its main products are official boats, work boats and leisure boats.
In 2022, Changzhou FRP Shipyard established a wholly-owned subsidiary, Boxing Company, and invested in the construction of Weichai (Qingdao) Marine Equipment Manufacturing Center project to expand the business of boats over 30 meters and under 80 meters. Changzhou FRP Shipyard has long been committed to the research, development, design and construction of small and medium-sized boats. It is a leading enterprise in the field of high-performance boats made of steel, aluminum and various composite materials in China.
As of the end of February 2025, Changzhou FRP Shipyard had total assets of RMB 871 million, total liabilities of RMB 650 million, total equity attributable to the parent company of RMB 221 million, operating income of RMB 17.8832 million and net profit of RMB -5.9236 million.