BEIJING, Feb. 14, 2020 /PRNewswire/ -- Huitao Technology Co., Ltd. (Nasdaq CM: HHT) (the "Company", "we" or "Huitao"), a company primarily focused on engineering, producing, servicing, delivering and pumping a comprehensive range of advanced ready-mix concrete materials for construction projects, announced today that it has completed the acquisition of Sunway Kids International Education Group Ltd. ("Sunway Kids"), an education provider headquartered in China on February 14, 2020.
Upon completion of the acquisition, pursuant to the terms of the Agreement, as amended, Sunway Kids became a wholly-owned subsidiary of HHT. Sunway Kids' shareholders have received 1,989,262 ordinary shares of HHT and will receive an aggregate cash consideration of $2.0 million payable annually according to certain earn-out schedule based on Sunway Kids' financial performance in the next five years.
"The closing of this acquisition represents a significant milestone to diversify our business and maximize our shareholder value," said Mr. Yang (Sean) Liu, the Chief Executive Officer of HHT. "Demand for smart education in China is rapidly increasing. We see enormous opportunities for value creation through the combination of Huitao's advantage as a public company and Sunway Kids' expertise in early childhood education with AI and robotic technologies. Our vision is to use Sunway Kids' platform to expand our business horizons."
Mr. Liming Lu, General Manager of Sunway Kids, stated: "we are delighted to move forward with this partnership with HHT and excited by the opportunity to accelerate the development and delivery of even stronger education services for our customers."
The Company is a holding company whose primary business operations are conducted through its wholly-owned subsidiaries Xin Ao Construction Materials, Inc. and Beijing Ao Hang Construction Materials Technology Co., Ltd., and our variable interest entity, Beijing Xin Ao Concrete Group and its subsidiaries. The Company engages in the production of advanced construction materials for large scale infrastructure, commercial and residential developments. The Company is primarily focused on engineering, producing, servicing, delivering and pumping a comprehensive range of advanced ready-mix concrete materials for highly technical, large scale, and environmentally-friendly construction projects. Ready-mixed concrete products are important building materials that are used in a vast majority of commercial, residential and public works construction projects. We are committed to conducting our operations with an emphasis on the extensive use of recycled waste materials, extending product life, the efficient production of our concrete materials with minimal energy usage, minimal dust and air pollution, and innovative products, methods and practices. For more information, please visit http://www.iphonem.com.
Sunway Kids Investment Holding Limited is an education and health service provider for children in China. It provides a well-structured system for early childhood education, including AI and robotic technologies, intellectual campus administration SAAS system and online education courses for kids and parents. Based on the performance data analysis, Sunway Kids provides personalized growth plan for each child. Sunway Kids helps schools in increasing education quality as well as generating derivative revenues by providing targeted courses and AI lessons for kids.
Certain statements made herein are "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "anticipate", "believe", "expect", "estimate", "plan", "outlook", and "project" and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Such forward-looking statements include timing of the proposed transaction; the business plans, objectives, expectations and intentions of the parties once the transaction is complete, and HHT's estimated and future results of operations, business strategies, competitive position, industry environment and potential growth opportunities. These forward-looking statements reflect the current analysis of existing information and are subject to various risks and uncertainties. As a result, caution must be exercised in relying on forward-looking statements. Due to known and unknown risks, our actual results may differ materially from our expectations or projections. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.