The acquisition of Win Yu International Investments Co., Ltd by China Wonder Limited was approved at the General Meeting held on 1 July 2011 and China Wonder Limited was readmitted to trading on AIM as Qihang Equipment Company Limited with the new symbol QIH with effect from 4 July 2011.

China Wonder was incorporated and registered in Jersey in 2004. China Wonder’s principal activity was, until recently, the manufacture of packing machinery and associated spare parts, equipment, mouldings, paper products, packing cartons and boxes in China.

In November 2010, the Company announced the sale of Jinzhou Wonder Machinery Equipment Co., Limited, a manufacturer of bespoke and specialised machinery for a wide range of industries, and Jinzhou Wonder Paper Products Co., Limited, a manufacturer of colour printing and paper products for a cash consideration of RMB30,000,000 (approximately £2.8 million) (the “First Disposal”). In addition, on 4 April 2011, the Company announced the disposal of Wonder Packaging Machinery Co. for a cash consideration of RMB33,000,000 (approximately £3.1 million) (the “Second Disposal”). Following these disposals, together representing the whole of its trading operations, the Company became an investing company for the purposes of the AIM Rules and adopted its investing policy at a General Meeting held on 27 April 2011.
As at the date of completion of the Second Disposal, China Wonder had cash balances of
RMB57,750,000 (approximately £5.5 million) with no outstanding borrowings.

The Board has been considering opportunities to pursue its investing strategy (as outlined above) and the Directors have identified the Win Yu Group as an opportunity to fulfil its key strategic objective of enhancing Shareholder value.

The business, comprising the design, manufacture and sale of lathe and milling machine tools, now operated by Jiangsu Qihang CNC Machine Tool Co., Ltd (the “JSQH”江苏齐航数控机床有限责任公司), the sole trading subsidiary of Win Yu, was established in the 1960s as a state-owned enterprise under the name of Zhenjiang Machine Tool Factory. It is located in Zhenjiang, Jiangsu Province, Eastern China, within easy reach of Shanghai. JSQH has a wide supplier network and good transport links as a result of its location in the Yangtze River Delta Economic Zone, and is therefore able to maintain a competitive advantage.