(Yicai Global) Dec.14 -- Chongqing Zongshen Power Machinery Co. [SHE:001696] announced its stocks will resume trading today.

The company announced its plan last month to acquire a 100 percent stake in Chongqing Dajiang Power Equipment Co. for CNY1 billion (USD150 million) including CNY472.5 million paid in cash and CNY577.5 million in issued stocks.

Doing business under the DUCAR and Dajiang brands, Dajiang Power Equipment is a supplier of terminal end general utility small gasoline engine products that it researches and develops, designs, manufactures and sells. The sellers promised that Dajiang Power Equipment's net profit after deducting non-recurring profits and losses (P&L) would be at least CNY70 million, CNY98 million and CNY126 million in the three fiscal years of 2018, 2019 and 2020, respectively.

The Shenzhen Stock Exchange inquired into the purchase plan on Nov. 29,  demanding a statement of the basis upon which the seller determined its performance commitment per the premise that, after deducting non-recurring profits and losses,y Dajiang Power Equipment's net profits were CNY2.38 million, CNY23.4 million and CNY26.47 million in 2015, 2016 and first three quarters of 2017, respectively.

Dajiang Power Equipment's disclosure of the plan shows that, as of Aug. 31, the entire equity company shareholders held was valued at CNY1.05 billion, while the premium rate of the acquisition price reached 1,357 percent.