Fangda advised Shenyang Machine Tool Co., Ltd (“Shenyang Machine Tool”, 000410.SZ) on its private placement (“non-public offering”) which raised just under RMB1.5 billion. The transaction was completed on October 28, 2022. The placement was fully taken up by Shenyang Machine Tool’s controlling shareholder, China General Technology (Group) Holding Co Ltd.

Shenyang Machine Tool is the first A-share listed machine tool company in China. It has extensive experience in machine tool R&D, manufacturing, sales, industry solutions and supporting parts production. The objective of the non-public offering is to reduce the company’s debt risk exposure, strengthen its asset-liability ratio and generally enhance its financial stability. By increasing its shareholding, China General Technology (Group) Holding Co Ltd. has demonstrated its confidence in Shenyang Machine Tool and in the high-tech machine tool industry generally.

Fangda acted as legal counsel to Shenyang Machine Tool, advising at all stages of the transaction, further confirming the firm’s capital markets expertise. The Fangda team was led by partners Lu Liu and Guanbing Chen, and the team members included Albert Zhu, Rick Jiang, Qianwen Hong, Laura Tao, Nan Cao, Charlotte Mao and Elizabeth Sun.