Core Viewpoint - Hubei Yihua is progressing with the acquisition of Xinjiang Yihua Chemical Co., aiming to increase its stake from 35.597% to 75% through the purchase of 100% equity in Yichang Xinfai Industrial Investment Co., which holds the stake in Xinjiang Yihua [1][3][5] Group 1: Acquisition Details - Hubei Yihua plans to pay 3.208 billion yuan for the acquisition [1] - The company is currently organizing intermediary institutions to conduct audits and due diligence for the transaction [1] - Upon completion, Xinjiang Yihua will become a wholly-owned subsidiary of Hubei Yihua, enhancing its control over the company [1][3] Group 2: Background of Xinjiang Yihua - Xinjiang Yihua, established in March 2010, was previously a significant subsidiary of Hubei Yihua, focusing on PVC, caustic soda, and urea [2] - The company faced operational challenges due to a safety incident in 2017, leading to a significant loss and asset impairment [2] - After restructuring and improving safety management, Xinjiang Yihua has recovered and improved its asset quality and profitability [2] Group 3: Industry Position and Competition - Hubei Yihua is a comprehensive chemical enterprise with a strong market presence in urea, diammonium phosphate, and PVC, contributing over 70% of its revenue [3] - The acquisition will resolve the existing competition between Hubei Yihua and Xinjiang Yihua, benefiting the company's development and protecting shareholder interests [4] Group 4: Strategic Benefits - The acquisition will enhance Hubei Yihua's chemical industry chain layout and improve asset quality and profitability [5] - Xinjiang Yihua's location in a resource-rich area provides a natural cost advantage for its operations [5] - The integration of Xinjiang Yihua with Hubei Yihua's existing subsidiaries in the region will foster synergy and improve overall competitiveness [5]