Core Viewpoint - Kairun Co., Ltd. is acquiring the remaining 28.15% stake in Shanghai Jiale Co., Ltd. for 394 million yuan, aiming to enhance operational efficiency and resource optimization, establishing a solid foundation for its "fabric + garment" growth strategy [1] Group 1: Acquisition Details - Kairun's wholly-owned subsidiary, Chuzhou Mirun Technology Co., Ltd., will hold 100% of Shanghai Jiale after the acquisition [1] - The transaction price for the 28.15% stake is 394 million yuan [1] Group 2: Business Integration and Performance - Since gaining control of Shanghai Jiale, Kairun has focused on business integration and synergy, leading to improved operational efficiency and performance [2] - In 2024, Shanghai Jiale achieved revenue of 1.489 billion yuan, a year-on-year increase of 15.81%, and net profit of 48.92 million yuan, marking a turnaround [2] - From January to September 2025, Shanghai Jiale reported revenue of 1.1 billion yuan and net profit of 64.61 million yuan, with a net profit margin of 5.88% [2] Group 3: R&D and Product Innovation - Kairun is enhancing Shanghai Jiale's management and technology capabilities, accelerating digital upgrades and refined management [2] - Shanghai Jiale's R&D efforts have led to several awards in 2024, including recognition for innovative and sustainable fabric products [2] Group 4: Financial Performance - In the first three quarters of the year, Kairun reported revenue of 3.719 billion yuan, a year-on-year growth of 22.94%, and a net profit of 256 million yuan, up 13.81% [3] - The operating cash flow reached 430 million yuan, a significant increase of 258.66% [3] - The gross margin for the third quarter was 23.8%, an increase of 1.84 percentage points year-on-year [3]

Core Viewpoint - Kairun Co., Ltd. plans to further increase its stake in Shanghai Jiale Co., Ltd. to strengthen control and enhance strategic synergy in the textile and garment industry [1][2] Group 1: Acquisition Details - Kairun's wholly-owned subsidiary, Chuzhou Mirun Technology Co., Ltd., intends to acquire an additional 20% stake in Shanghai Jiale for a transaction price of 280 million yuan [1] - Following the acquisition, Kairun's ownership in Shanghai Jiale will rise from 51.85% to 71.85%, solidifying its control [1] - Kairun first invested in Shanghai Jiale in 2020 with a 28.7% stake, which has been increased in subsequent years [1] Group 2: Strategic Rationale - The acquisition is aimed at enhancing overall strategic coordination and resource integration, reducing management costs, and optimizing resource allocation [1] - Kairun views the garment manufacturing industry as closely aligned with its existing bag manufacturing business, with high customer entry barriers [2] Group 3: Performance Metrics - Shanghai Jiale achieved a revenue of 1.489 billion yuan in 2024, a year-on-year increase of 15.81%, and turned a profit with a net income of 48.92 million yuan [2] - In the first half of this year, Shanghai Jiale reported a revenue of 685 million yuan, up 6.88%, and a net profit of 34.75 million yuan, a significant increase of 65.01% [2] - Kairun's overall revenue for the first half of the year reached 2.427 billion yuan, a 32.53% increase, with the garment manufacturing segment growing by 148.25% [3]