Core Viewpoint - Yongji Co., Ltd. is planning to acquire control of Turnerfly through a combination of issuing shares and cash payment, which may constitute a significant asset restructuring [2][5]. Group 1: Acquisition Details - On August 13, Yongji Co., Ltd. signed a letter of intent with the controlling shareholder of Turnerfly, agreeing to pay for the equity of the target company through share issuance and cash [5]. - The acquisition involves issuing shares to no more than 35 specific investors to raise matching funds, with the final transaction price to be determined based on audit and evaluation reports [5]. - The transaction is still in the planning stage, and no formal agreement has been signed yet, indicating uncertainty in the specific transaction plan [5]. Group 2: Business Operations - Yongji Co., Ltd. primarily engages in the design, research and development, production, and sales of cigarette labels and other packaging products, serving brands such as Guoyan and Nanjing [6]. - The company is expanding into the social printing market, including cigarette labels, liquor packaging, and pharmaceutical packaging, to enhance its competitive edge [6]. Group 3: Semiconductor Sector Involvement - This acquisition is not Yongji Co., Ltd.'s first attempt to enter the semiconductor sector; in September 2021, the company invested 107 million yuan to acquire a 51% stake in Shanghai Aiyuan Semiconductor [7]. - Due to changes in the external environment and delays in the commercialization of technology, Yongji Co., Ltd. terminated its second-phase investment in Shanghai Aiyuan in 2024 to control risk exposure [7]. Group 4: Pharmaceutical Business Growth - Yongji Co., Ltd. has also entered the regulated pharmaceutical industry, with revenue from this sector reaching 142 million yuan in 2024, a year-on-year increase of 75.57% [8]. - The regulated pharmaceutical business has become the company's second main business, surpassing liquor label revenue and only trailing behind cigarette label revenue [8]. - The company is focusing on product innovation and market expansion, particularly in Australia, where it offers products for chronic pain, cancer pain relief, and other conditions [9]. Group 5: Financial Performance - In the first quarter of 2025, Yongji Co., Ltd. reported revenue of 227 million yuan, a year-on-year increase of 1.24%, while net profit attributable to shareholders decreased by 7.58% to 37.42 million yuan [10].
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