Core Viewpoint - Wihua New Materials plans to acquire a 70% stake in He Yu Tai Chemical for 154 million yuan, aiming to enhance its competitiveness in the agricultural chemical sector and extend its product chain [2][3] Group 1: Acquisition Details - The acquisition involves Wihua's subsidiary, Zhejiang Fanghua Chemical, purchasing the stake from Zhejiang Xinhai Biological [2] - The transaction will be funded through self-owned funds and bank loans, with He Yu Tai becoming a controlled subsidiary post-acquisition [2] - He Yu Tai, established in June 2013, specializes in the research, production, and sales of agricultural chemicals, including herbicides and fungicides [2] Group 2: Strategic Rationale - The acquisition is part of Wihua's strategy to vertically extend its industrial chain, enhancing its overall competitiveness in the industry [2] - By acquiring He Yu Tai, Wihua can bypass lengthy and costly pesticide registration processes, potentially saving 2-3 years in market entry time [3] - He Yu Tai has faced losses due to low market prices and underutilization of capacity, but signs of improvement are noted, with reduced losses expected in the first half of 2025 [3] Group 3: Future Plans - Post-acquisition, Wihua aims to improve He Yu Tai's sales channels, capacity utilization, and internal operations to achieve profitability by 2026 [3] - He Yu Tai's current products rely on three main raw materials that are also produced by Wihua, ensuring stable supply and reducing procurement uncertainties [3]
巍华新材斥资1.54亿元收购禾裕泰七成股权