Core Viewpoint - Wihua New Materials plans to acquire a 70% stake in Jiangsu Heyutai Chemical Co., Ltd. from Zhejiang Xinhai Biological Co., Ltd. for a cash consideration of 154 million yuan, aiming to enhance its competitive position in the agricultural chemicals sector [1][2] Group 1: Acquisition Details - The acquisition will be funded through the company's own funds and bank loans, and after completion, Heyutai will become a subsidiary included in the consolidated financial statements of Wihua New Materials [1] - Heyutai, established in June 2013 with a registered capital of 120 million yuan, specializes in the research, production, and sales of pesticide active ingredients, formulations, and intermediates [1] Group 2: Strategic Rationale - The acquisition aligns with the company's strategy of vertical integration within its supply chain, aiming to extend its product line and enhance overall competitiveness in the industry [1] - By acquiring Heyutai, Wihua New Materials can bypass lengthy and costly pesticide product registration processes, potentially saving 2-3 years and allowing quicker market entry [2] Group 3: Financial Performance and Future Outlook - Heyutai is currently operating at a loss due to fluctuating market prices for agricultural products and underutilization of capacity, but there are signs of improvement, with reduced losses expected in the first half of 2025 compared to the previous year [2] - Wihua New Materials plans to implement measures such as expanding sales channels, improving capacity utilization, optimizing production processes, and enhancing internal management to achieve profitability for Heyutai by 2026 [2] - The acquisition will also ensure a stable supply of key raw materials for Heyutai, which are already sourced from Wihua New Materials and its subsidiaries, thereby reducing procurement uncertainties and improving operational efficiency [2]

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]