2023.12.07
Recently, Hangzhou Yinhu Electrical Equipment Co., Ltd. (“Yinhu Electric”) completed its internal asset restructuring.
Founded in 1998, Yinhu Electric is a leading supplier of reactive power compensation and harmonic control solutions in China. It was one of the drafters of the industry standard of high- and low-voltage filters. The company is a key high-tech enterprise supported by the state, and has established a provincial-level high-tech enterprise research and development center, as well as a Zhejiang provincial-level postdoctoral workstation.
To further improve the company’s industrial chain and diversification, Yinhu Electric intends to divest its business and related assets that align with its specialized and sophisticated positioning through asset restructuring.
JunHe was engaged by Yinhu Electric to serve as the legal counsel for the asset restructuring. In order to minimize the tax burden associated with the company’s restructuring, JunHe recommended adopting a spin-off approach based on extensive legal and tax feasibility analyses. JunHe’s team drafted the asset restructuring plan and agreement, assisted the company in communicating with government authorities such as the natural resources bureau, the administration for market regulation and the taxation administration, and facilitated the completion of the relevant procedures. Yinhu Electric adopted JunHe’s restructuring plan and successfully completed the asset restructuring. The efficient and pragmatic legal services as well as the professional and detail-oriented expertise delivered by JunHe were highly recognized by the client.
The JunHe team was led by partner YOU, Yi who was also responsible for the specific work of the project. As a lawyer and a certified public accountant, Mr. You has solid expertise in taxation and finance and has provided legal services in tax planning for the asset restructuring projects of numerous companies. These include, but are not limited to, the merger with and restructuring of Shanghai Jiu Bang Chemical Co., Ltd. by Shanghai Jinli Pharmaceutical Co., Ltd. (formerly known as Shanghai Jinli Chemical Co., Ltd.), the spin-off of Lin’an Hengye Real Estate Development Co., Ltd. from Zhejiang Huate Real Estate Development Co., Ltd. and its merger into Zhejiang Hengsheng Property Co., Ltd., the spin-off of Hangzhou Runyan Hotel Co., Ltd. from Hangzhou Yulinglong Property Co., Ltd. and its merger into Hangzhou Runda International Hotel Co., Ltd., Fulai Spray Painting’s merger into Fulai New Materials (605488), the spin-off of Tiantai County Huanrun Enterprise Management Co., Ltd. from Huantai Precision (839356), and a series of restructurings by Zhejiang Dayou Group Co., Ltd. and its subsidiaries.
