Core Viewpoint - 康龙化成 plans to invest 1.346 billion yuan to acquire 82.54% of Wuxi Baiaode Biotechnology Co., Ltd, enhancing its capabilities in structural biology and drug discovery services [1][4]. Group 1: Acquisition Details - 康龙化成 will acquire 82.54% of Baiaode for a total valuation of 1.5 billion yuan, which corresponds to a price-to-sales ratio of 6.2 times and a price-to-earnings ratio of 26 times [1][5]. - The acquisition is expected to complement 康龙化成's existing biological science services, aligning with its core strategy of "full-process, integrated, international, and multi-therapy" [4]. Group 2: Financial Performance of Baiaode - As of the end of Q3, Baiaode reported a net asset value of 608 million yuan, indicating a premium in the acquisition price [5]. - Projected revenues for Baiaode are approximately 241 million yuan for 2024 and 200 million yuan for the first three quarters of 2025, with net profits of about 57.77 million yuan and 41.80 million yuan respectively [5]. Group 3: Market Context and Strategic Implications - The acquisition is seen as a strategic move to enhance 康龙化成's technical platform and service capabilities in complex drug target protein preparation and analysis [4]. - Industry expert Lin Xianping emphasizes that resource barriers provide short-term stability, while long-term success relies on continuous innovation and brand trust [5]. Group 4: Related Party Transactions - The transaction involves related parties, including significant shareholders and management, indicating a complex ownership structure [6]. Group 5: 康龙化成's Financial Performance - In the first three quarters of 2023, 康龙化成 reported revenues of 10.086 billion yuan, a year-on-year increase of 14.38%, while net profit decreased by 19.76% to 1.141 billion yuan [7]. - For Q3 alone, revenues were 3.645 billion yuan, up 13.44%, with net profit rising by 42.52% to 440 million yuan [7].