Core Viewpoint - Yongji Co., Ltd. is planning to acquire control of Nanjing Turnafly Electronic Technology Co., Ltd., which specializes in the research, production, and sales of data storage main control chips [2][5][9]. Group 1: Acquisition Details - Yongji Co., Ltd. announced on August 13 that it is planning to acquire Turnafly's control through a combination of issuing shares and cash payments, while also raising supporting funds from no more than 35 specific investors [5][9]. - The acquisition may constitute a significant asset restructuring but will not lead to a change in the actual controller of the company, thus not qualifying as a restructuring listing [7][9]. - Trading of Yongji's stock, convertible bonds, and the conversion of convertible bonds will be suspended starting from August 14, 2025, with an expected suspension period of no more than 10 trading days [7][9]. Group 2: Company Background - Yongji Co., Ltd. primarily engages in the design, research, production, and sales of cigarette labels and other packaging products, with over 80% of its revenue coming from the printing and packaging sector [10][11]. - The company is also exploring opportunities in the overseas controlled pharmaceutical industry as a second main business to optimize its industrial layout and cultivate new growth curves [10][11]. - In the first quarter of 2024, Yongji reported a decline in net profit attributable to the parent company, influenced by a competitive printing and packaging industry and a slight decrease in sales prices of its main cigarette label products [13][14]. Group 3: Financial Performance - As of March 31, 2025, Yongji's total revenue was 2.27 billion, with a year-on-year growth of 1.24% [14]. - The company's net profit for the same period was 0.40 billion, reflecting a year-on-year decrease of 7.49% [14]. - Research and development expenses for the first quarter of 2025 were reported at 0.09 billion [14].
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