Shareholders’ Special Meeting of BIITT Approved the Acquisition of 95% Equity of Huaqi Intelligent

2019/2/28 1053

On Monday, February 25, 2019, BII Railway Transportation Technology Holdings Company Limited (hereinafter referred to as “BIITT” or the “Company”, Hong Kong Stock Code: 01522) held a special shareholders’ meeting at Beijing Headquarters. The meeting approved BIITT’s acquisition of Suzhou Huaqi Intelligent Technology Co., Ltd. (hereinafter referred to as “Huaqi Intelligent”), a wholly-owned subsidiary of NetPosa Technologies Co., Ltd. (hereinafter referred to as “NetPosa”). The successful convening of this special shareholders’ meeting means that Huaqi Intelligent has passed all the approval procedures including those of Beijing SASAC, Hong Kong Stock Exchange and BIITT, and the project will enter the final delivery stage. According to the acquisition agreement, the Company will acquire 95% equity of Huaqi Intelligent held by NetPosa at a transaction consideration of RMB 1.045 billion.

Founded in December 2010 and headquartered in Suzhou City, Jiangsu Province, Huaqi Intelligent belongs to the information industry of rail transit in the subdivision of rail transit industry. It mainly provides solutions for automation and information systems applied in the transportation field and it has provided products, technology, system integration, operation services and business consulting for China’s high-speed railway, general-speed railway, urban rail transit, inter-city railway and municipal railway. 

Huaqi Intelligent’s main product is the Vehicle-mounted Passenger Information System of Rail Transit (hereinafter referred to as “vehicle-mounted PIS”), which belongs to one of the six major information systems of rail transit and is the communication medium between stations or vehicles and passengers. Huaqi Intelligent ranks first in China’s rail transit vehicle-mounted PIS market share and has expanded its market to India, Iran and other countries in 2016. As of September 30, 2018, Huaqi Intelligent’s products have been used in more than 20 cities around the world, with more than 400 employees, and will continue to expand its market share at home and abroad in the future.

In terms of market layout, Huaqi Intelligent covers more than ten domestic cities such as Shanghai, Suzhou, Hangzhou, Chengdu, Shenzhen and Hong Kong, as well as overseas markets such as Iran and India, while BIITT is concentrated in Beijing and its surrounding areas. The two enterprises complement each other in market, and after completion of the acquisition, they will further expand each other’s customer range, which will significantly enhance the market expansion of BIITT and contribute to business development in the future.

In terms of performance, Huaqi Intelligent, with years of independent research and development and accumulation of core technologies, has achieved sustained growth, and steadily improved its profitability in recent years. According to the performance forecast and performance commitment in the acquisition agreement, after the acquisition, Huaqi Intelligent shall significantly improve the profit of consolidated statement of BIITT, which will greatly enhance the operating performance, corporate image and capital market influence of the listed companies.

In terms of strategy, Huaqi Intelligent, as the leading enterprise in the vehicle-mounted PIS industry of rail transit, provides strong technical support for the strategic positioning of BIITT as urban rail transit intelligence system service provider. After the acquisition, both parties will conduct in-depth exchanges and integration at the technical, product and market levels, to enhance technical strength and achieve the strategic goal of the first-class intelligent rail transit system service provider.

With the continuous advancement of supply-side reform in the field of urban rail transit, rail transit information services are full of opportunities for development. This merger and acquisition is an important strategic layout of BIITT. In the future, BIITT will continue to improve quality and enhance efficiency, expand the market, and strive to build a leading intelligent transportation enterprise that is full of competitiveness and scale effect and leading the development of rail transit information industry.