On 16 April 2019, the Group entered into an agreement with Universal Marble & Granite Group Limited and Dongguan Junye Investments Consultancy Company Limited for the acquisition of 20.0061% equity interests of Universal Marble & Granite (Dongguan) Co., Ltd. ("Universal Marble") at a consideration of approximately RMB388 million. Together with the acquisition of 19.9939% equity interests on 18 January 2019, upon completion of the above acquisitions, the Group will hold as to 40% of Universal Marble in aggregate for a total consideration of approximately RMB776 million.
The scope of operations of Universal Marble covers operations of mines, design, research and development, manufacture and processing of engineering stones and natural stones, as well as installation of curtain walls. Its products are sold worldwide. As a systematic solution provider of decorative stones, Universal Marble has been specializing on the manufacture and application of stones over the years and is one of the renowned brands in the stone industry in the Chinese Mainland.
The acquisitions will foster the Company's strategic transformation, create business synergy values and achieve the development strategy for extension of industry chain. In the future, the Group will proactively seize the development opportunities in Guangdong-Hong Kong-Macao Greater Bay Area and further enhance the advantages of resources positioning in southern China.
