On October 9, 2024, YUHUAN CNC Machine Tool Co., Ltd. (hereinafter referred to as "YUHUAN CNC") announced a significant strategic move in its business development. The company's Board of Directors approved the acquisition of a 33.33% equity stake in HUNAN Southern Machine Tool Co., Ltd. (hereinafter referred to as "Southern Machine Tool") for a consideration of RMB 10 million using its own funds.

This acquisition marks a crucial step for YUHUAN CNC in expanding its numerical control machine tool business and enhancing its product 

diversity and market competitiveness. 

Southern Machine Tool, which traces its origins to the century-old "Changsha Machine Tool Factory," one of the "Eighteen Arhats" of the 

Chinese machine tool industry, is a leading enterprise in the research and manufacture of numerical control broaching machines.  Its products 

cover a wide range of industries, including automobiles, aerospace, wind power, engineering machinery, and shipbuilding. Numerical control 

broaching machines play a vital role in metal-cutting machine tools, primarily used for broaching various geometric shapes of through-holes, 

formed outer surfaces, and gear tooth profiles, featuring high speed, efficiency, and precision. 

By acquiring a stake in Southern Machine Tool, YUHUAN CNC aims to further enrich its product categories and enhance its comprehensive 

competitiveness and brand influence through collaborative development of related technologies and market customers. 

This acquisition is a testament to YUHUAN CNC's commitment to growing its business around its core numerical control machine tool business. 

With this strategic move, the company is poised to further strengthen its position in the market and provide even more diverse and competitive 

products to its customers. 

YUHUAN CNC continues to focus on the research, production, sales, and service of numerical control grinding equipment and intelligent equipment,

 while expanding into new areas through strategic acquisitions. 

Stay tuned for more updates from YUHUAN CNC as it continues to drive innovation and growth in the numerical control machine tool industry!