Core Viewpoint - DuPont has signed an agreement to acquire Zhonghua (Ningbo) Runwo Membrane Technology Co., Ltd. to expand its reverse osmosis (RO) manufacturing business in China and the Asia-Pacific region, addressing the growing demand for industrial water purification and reuse [1][2]. Group 1: Acquisition Details - The acquisition aims to enhance local production and improve logistics reliability while reducing carbon footprint. The transaction is expected to be completed by Q4 2025 [1]. - The new facility will be DuPont's third RO production base, following advanced facilities in Minnesota, USA, and Jubail, Saudi Arabia [1]. - The RO technology is crucial for desalinating brackish and seawater for various applications, including industrial and municipal water treatment [1]. Group 2: Company Background - Zhonghua (Ningbo) Runwo was established on January 8, 2019, with a registered capital of 675 million RMB, and is a state-owned enterprise controlled by Sinochem International [2]. - The company specializes in the research, manufacturing, and sales of composite RO membranes and nanofiltration membranes, with a planned annual production capacity of 220,000 RO membranes by March 2024 [2]. Group 3: Financial Performance - The financial performance of Zhonghua (Ningbo) Runwo shows a net loss of 20.91 million RMB in the first five months of 2025, with zero revenue and net assets of 37.85 million RMB [2][3]. - Sinochem International has also reported declining performance, with a 37.94% year-on-year drop in revenue to 54.27 billion RMB in 2023 and a net loss of 1.848 billion RMB, reflecting a significant decrease of 240.99% [3].