CAFX(SZ:002760) Chang Jiang Shang Bao·2025-12-19 00:18Core Viewpoint - Fengxing Co., Ltd. plans to enter the hazardous waste disposal and recycling sector by acquiring a 75% stake in Baiyin Huaxin Jiuhe Resource Co., Ltd. from its indirect controlling shareholder, Guangdong Huaxin [1][2]. Group 1: Acquisition Details - The acquisition will be conducted through a share issuance, with the price set at 17.07 yuan per share, which is at least 80% of the average trading price over the previous 120 trading days [2]. - The funds raised will be used for project construction, working capital, and intermediary fees [2]. - Baiyin Huaxin has a waste disposal capacity of 75.5 million tons per year and holds licenses for three categories of hazardous waste [3]. Group 2: Business Transition - This acquisition marks a strategic shift for Fengxing from traditional metal products to the emerging green circular economy sector [1][2]. - The integration of Baiyin Huaxin will enhance Fengxing's service offerings to the non-ferrous mining industry, extending its operational capabilities from upstream mining to downstream hazardous waste disposal [3]. Group 3: Financial Performance - Fengxing's revenue from its main businesses, including wear-resistant materials and marine electrical systems, was 191 million yuan and 97.27 million yuan, respectively, in the first half of the year [3]. - The company experienced a decline in revenue and net profit from 2022 to 2024, with revenues of 816 million yuan, 691 million yuan, and 588 million yuan, and net profits of 62.46 million yuan, -59.64 million yuan, and -60.83 million yuan [4]. - In 2025, Fengxing reported a revenue increase of 1.57% to 443 million yuan and a net profit of 17.09 million yuan, marking a 19.64% year-on-year growth [5].