According to the China Securities Network of Shanghai Securities News, WBEC announced on the evening of November 22 that the company signed the letter of Intent for acquisition with Shanghai Changwei Equity Investment Partnership (Limited Partnership) and Southern Industrial Asset Management Co., Ltd. on the same day, intending to acquire 54.97% and 25% of the shares of Yunnan Transformer Electric Co., Ltd. (hereinafter referred to as "YTEC" or "Target Company") held by the two companies respectively through the listing method of the Property Exchange. The final acquisition ratio will be subject to the formally signed share acquisition agreement.

According to the information, YTEC was established on January 23, 1999 with a registered capital of approximately 100 million yuan. It is located at No. 212 Tuoxiang Road, Luoyang Street Office, Economic Development Zone, Kunming Section, China (Yunnan) Pilot Free Trade Zone. Its business scope includes the production, manufacturing and sales of various transformers; electromagnetic wires, silicon steel sheets, and box-type substations; general contracting of power engineering construction; power facility installation (repair and testing) business, etc. All parties agree that the valuation of the share transfer shall be based on the valuation issued by the audit and appraisal institutions recognized by all parties, and the final transaction price shall be based on the result after the Target Company fulfills the listing transfer procedures of the Assets and Equity Exchange.

According to relevant responsible personnel of WBEC, one of the company's current main businesses is the research and development, production and sales of power transmission, distribution and control equipment. The power transmission, distribution and control equipment products include 110KV and below power transformers, complete sets of electrical equipment and box-type substations. In 2022, the company achieved a power transformer output of 8.527 million kVA, and produced 9,491 complete sets of electrical equipment, and 1,138 box-type substations, with capacity utilization rates of 101.71%, 91.93% and 83.92% respectively. The target company's main business is the production and sales of 220kV and below power transformers, traction transformers and other types of transformers, and it also has the production capacity of 500kV transformers.

The company stated that if the transaction is finally implemented, it will quickly enhance its R&D capabilities and market competitiveness of 220kv and below transformers, and have the production capacity of 500kV power transformers. At the same time, it will help expand the company's product business scale and further enhance the company's overall competitiveness.