HUAKANG(SH:605077) Mei Ri Jing Ji Xin Wen·2025-03-27 15:59Core Viewpoint - Huakang Co., Ltd. is acquiring 100% equity of Henan Yuxin Sugar Alcohol Co., Ltd. for a total transaction price of 1.098 billion yuan, aiming to strengthen its leading position in the domestic and international xylitol market [1][2]. Group 1: Transaction Details - The acquisition will be executed through a combination of issuing shares and cash payments, with the total price set at 1.098 billion yuan [1]. - Huakang plans to pay 733 million yuan in shares and 366 million yuan in cash for the acquisition [2]. - The share issuance price is set at 12.00 yuan per share [4]. Group 2: Financial Performance of Target Company - Yuxin Sugar Alcohol is projected to generate revenues of 717 million yuan and 919 million yuan in 2023 and 2024, respectively, with net profits of -8.78 million yuan in 2023 and 100 million yuan in 2024 [2]. - The target company's production capacity and technology are considered advanced within the industry, contributing to its strong market position [2]. Group 3: Strategic Benefits - The acquisition is expected to enhance Huakang's supply chain stability and risk resistance by integrating resources from both companies [2]. - Huakang's investments in starch sugar production will provide a stable raw material supply for Yuxin's maltitol products, while Yuxin will offer capacity for Huakang's product distribution [2]. Group 4: Market Position - Huakang is a major player in the global xylitol market, holding a 25.5% market share globally and a 58.5% share domestically, ranking second and first respectively [1].