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Shanghai News China Securities Net (reporter Qidoudu) September 14, Rayma Industrial co., LTD., a subsidiary of Suzhou Industrial Park Xinkai Precision Hardware Co., LTD. (referred to as "Xinkai Precision") plans to invest in expanding fastener production projects for 5G communications and new energy battery packs for automobiles. The total planned investment of the project is 260 million RMB, which is funded by Xinkai Precision's own or self-raised funds.

At the same time, the Board of Directors of Cheersson agreed to acquire 45% equity of Xinkai Precision held by natural persons Lin Juqiang and Sun Mei with its own funds of 154 million RMB, and signed the Equity Transfer Agreement with Lin Juqiang and Sun Mei in Huqiu District, Suzhou city on the date of the board's review and approval. The aforementioned equity transfer shall become effective upon approval by the general meeting of shareholders of the Company. Upon completion of the foregoing transaction, New Kai Precision becomes a wholly owned subsidiary of the Company. Xinkai Precision is mainly engaged in the research and development, production and sales of precision fasteners, which are mainly used in mobile communication, automobile, electric power and other industries. It is the business center of precision metal fasteners of the company.

The announcement shows that the main equipment included in the project construction is high-end intelligent multi-station molding equipment, CNC precision multi-axis processing equipment, national laboratory, integrated intelligent storage and automatic container, etc. After the completion of the project, the annual output of fastener products is 3 billion pieces. Construction is scheduled to start in 2021 and take two years to complete.

Cheersson said that the investment in construction projects has been company and new kay precision measured, analyzed thoroughly, and new kay precision have good technical advantages and market competitive advantage, the expansion of new capacity is closely related to the company and new kay precision existing products, to achieve product market, brand, technology and other aspects of resource sharing.

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