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 - The acquisition of a 20% stake in Shanghai Jiale by Kairun Co., Ltd. aims to enhance control and operational efficiency, supporting the company's strategy of creating a "fabric + garment" growth curve [1][3]. Group 1: Acquisition Details - Kairun's wholly-owned subsidiary, Chuzhou Mirun Technology Co., Ltd., plans to acquire a 20% stake in Shanghai Jiale for 280 million yuan, funded through self-raised or self-owned funds [1]. - After the acquisition, Chuzhou Mirun's stake in Shanghai Jiale will increase to 71.85%, further consolidating control [1]. Group 2: Shanghai Jiale's Performance - Since being included in Kairun's consolidated financial statements in June 2024, Shanghai Jiale achieved a revenue of 1.489 billion yuan in 2024, a year-on-year increase of 15.81%, and a net profit of 48.93 million yuan, marking a return to profitability [2]. - In the first half of 2025, Shanghai Jiale reported a revenue of 685 million yuan, a year-on-year growth of 6%, and a net profit of 34.75 million yuan, a significant increase of 65.01% [2]. Group 3: Strategic Integration and Synergy - Kairun is actively promoting the integration of Shanghai Jiale's apparel business with its existing bag business, enhancing operational efficiency and performance [2]. - The company is focusing on digitalization and refined operations at Shanghai Jiale, leading to improved management, customer expansion, and innovation [2]. - The acquisition is seen as a critical step in optimizing the industrial layout and enhancing strategic synergy, which is expected to provide broader development opportunities in the apparel sector [3].