APAR Industries plans 70% Hebei stake at RMB 2.485 crore

APAR Industries Limited plans to acquire 70% of Hebei Jinghuan Cable Co. Ltd through its wholly owned subsidiary for an estimated RMB 2.485 crore. The October 30, 2026 agreement is intended to create a China-based, 100% export-focused overhead-conductor operation, although Hebei was non-operating and had nil turnover in FY2025 and FY2024.

What is APAR Industries acquiring in China?

APAR Industries is acquiring a 70% equity interest in Hebei, a limited liability company incorporated under the laws of the People’s Republic of China. Petroleum Specialities Pte Ltd, APAR Industries’ wholly owned subsidiary, entered into an Equity Interest Transfer Agreement on October 30, 2026 to make the acquisition. Hebei’s stated industry is the manufacture of overhead conductors for power-transmission and power-distribution networks.

The filing describes Hebei as a non-operating entity as of October 30, 2026, rather than a currently trading business with reported sales. Its turnover was nil in FY2025 and FY2024, while FY2023 turnover was marked as not available. The disclosure says Hebei will become APAR Industries’ step-down wholly owned subsidiary upon acquisition, while also stating that Petroleum Specialities will acquire 70% of its equity interests.

The 70% interest is stated as RMB 2.485 crore of Hebei’s total paid-up capital, against total registered capital of RMB 3.5 crore. Those capital figures identify the equity interest being transferred, whereas the estimated purchase price is based on the target’s net asset value at the transaction closing date. The filing does not identify the selling shareholder.

How much will APAR Industries pay for Hebei?

APAR Industries estimates the purchase price for the 70% interest at RMB 2.485 crore, equal to 70% of Hebei’s net asset value on the transaction closing date. The company stated that the estimate uses a price-to-book ratio of 1 time, meaning the consideration is linked to the closing-date balance-sheet position rather than to a fixed amount in the agreement.

The consideration will be paid in cash, not through a share swap. Petroleum Specialities must pay the first instalment, equal to 30% of the purchase price, within seven business days of the closing date. The remaining 70% will be deposited in an escrow account and released only after the seller fulfils agreed conditions.

The payment sequence means the estimated RMB 2.485 crore is not all released immediately at closing. Both parties are to enter an escrow agreement with an escrow bank to hold the final instalment. The filing gives no specific completion date and says payment remains subject to fulfilment of criteria under the Equity Interest Transfer Agreement.

Why is APAR Industries buying a non-operating company?

APAR Industries says the acquisition is intended to diversify its manufacturing presence for aluminium overhead conductors across geographies. Hebei is expected to operate as a 100% export-focused enterprise, positioning the Chinese entity as a manufacturing platform for conductor exports rather than as a business serving a disclosed domestic market.

The target’s recent record indicates that the transaction is directed at establishing that platform rather than acquiring existing turnover. Hebei recorded nil turnover in both FY2025 and FY2024 and remained non-operating on October 30, 2026. APAR Industries did not disclose a production start date, export customer base, capacity, sales target or revenue forecast for Hebei.

Hebei’s assets at closing are expected to be mainly bank balances, representing 95% of assets, with machinery and equipment representing the remaining 5%. This asset composition differs from a transaction built around an operating manufacturer with ongoing revenue, and it aligns with the stated valuation approach of 1 time price-to-book on closing-date net asset value.

What does Hebei’s financial record and asset mix show?

Hebei’s disclosed turnover history shows no reported sales in its two latest financial years. Turnover was nil in FY2025 and nil in FY2024, while the FY2023 figure was unavailable rather than reported as nil. The unchanged FY2024 and FY2025 position is consistent with the company’s non-operating status at the October 30, 2026 announcement date.

The filing does not disclose Hebei’s earnings, debt, cash balance, machinery value or net asset value amount. Instead, it states that 95% of closing-date assets will comprise bank balances and 5% will comprise machinery and equipment. This leaves the disclosed RMB 2.485 crore estimate tied to the net asset value mechanism, without a reported sales or profit multiple.

The disclosed comparison also shows that no turnover recovery was reported between FY2024 and FY2025. While Hebei’s stated business will be the export of overhead conductors, APAR Industries has not provided figures for anticipated output, the value of export orders or the timing of commercial operations after closing.

Which approvals and future rights still matter?

APAR Industries says applicable compliances and approvals under the Foreign Exchange Management Act, 1999 and registration with the State Administration of Foreign Exchange, or SAFE, will be completed in due course. The filing also refers to other applicable pre-closing and post-closing obligations, but does not specify the date by which those requirements must be completed.

The seller’s agreed conditions are central to the transaction because 70% of the purchase consideration is due to remain in escrow after the initial 30% instalment. That balance will be released only after the seller fulfils the agreed conditions. Accordingly, the agreement signed on October 30, 2026 does not itself establish completion of the equity transfer or release of the entire cash consideration.

Petroleum Specialities also has a call option, but no obligation, to acquire Hebei’s remaining 30% equity interest after five years. The valuation for any later purchase is to be determined under a prescribed formula by a third-party valuer mutually appointed by the parties. APAR Industries did not disclose that formula or state whether it expects to exercise the option.

Conclusion

The proposed transaction gives APAR Industries a 70% interest in a Chinese overhead-conductor entity that is intended to become wholly export-focused. Its estimated RMB 2.485 crore cost is based on 70% of closing-date net asset value at 1 time price-to-book, while the target had no turnover in FY2024 or FY2025 and expects 95% of its assets at closing to be bank balances.

The next points to watch are fulfilment of the Foreign Exchange Management Act and SAFE requirements, satisfaction of the seller conditions required to release the 70% escrow balance, and the unspecified closing date. Over the longer term, Hebei’s move from non-operating status to conductor exports and the five-year call option for the remaining 30% are the milestones disclosed by APAR Industries.