China Automation announced that it will acquire a 100% interest in the issued share capital of Kevin China at a total cash consideration of 100 million yuan, while it holds a 25% stake in Wuzhong Instrument. After the acquisition is completed, the actual shareholding of the group in Wuzhong Instrument will increase from 25% to 50%. The Group will have the right to appoint an additional director through Kewen China to join Wu Zhongyi's board of directors and nominate the chairman of the board.
Wuzhong Instrument is a Sino-foreign joint venture and is mainly engaged in the production of industrial automatic control valves. The control valve is mainly used to receive information from the controller and press the information to switch the whole or part of the valve to control the flow, pressure, or liquid level.