Core Viewpoint - Weixing New Materials (002372) has successfully acquired a controlling stake in Beijing Songtian Cheng Technology Co., Ltd., enhancing its business portfolio in the municipal pipeline sector [1] Group 1: Company Overview - As of February 3, 2026, Weixing New Materials closed at 11.95 yuan, up 0.59% from the previous trading day, with a total market capitalization of 19.025 billion yuan [1] - The stock opened at 11.87 yuan, reached a high of 12.03 yuan, and a low of 11.68 yuan, with a trading volume of 1.93 billion yuan and a turnover rate of 1.11% [1] Group 2: Acquisition Details - On January 22, 2026, Weixing New Materials signed a share transfer agreement to acquire 88.2557% of Beijing Songtian Cheng Technology Co., Ltd. for 110,739,201 yuan [1] - The acquisition has been completed with the necessary changes in shareholder registration, articles of association, and legal representative, and the company is now a subsidiary of Weixing New Materials [1] - Following the changes, Beijing Songtian Cheng's registered capital is now 57.33 million yuan, focusing on the research, manufacturing, and sales of polyethylene valves for gas and heating municipal pipelines [1]

Transaction Overview - The company plans to acquire 88.2557% of Beijing Songtian Cheng Technology Co., Ltd. for 110,739,201.00 RMB to enhance its product chain in municipal pipeline sectors and improve its system solution capabilities [2][3] - Songtian Cheng, established in 2000, specializes in the R&D, manufacturing, and sales of polyethylene valves for municipal pipelines and is recognized as a "National High-tech Enterprise" [2][8] Financial Data of the Target Company - As of December 31, 2025, the total assets of Songtian Cheng were 135,825,210.12 RMB, with total liabilities of 12,635,259.12 RMB, resulting in a net asset value of 123,189,951.00 RMB [9] - The company reported a revenue of 31,899,366.01 RMB for the year 2025, but incurred a net loss of 10,611,780.97 RMB due to market demand weakness and intensified competition [9][10] Valuation and Assessment - The valuation of the target company was conducted by Kun Yuan Asset Appraisal Co., Ltd., which determined the book value of the equity to be 123,189,951.00 RMB and the assessed value to be 156,844,262.10 RMB, reflecting a 27.32% increase [13][15] Purpose and Necessity of the Acquisition - The acquisition aims to leverage Songtian Cheng's technological advantages in the gas and heat sectors to enhance the company's core competitiveness and transition its business model from selling individual products to integrated solutions [21][24] - The company intends to utilize Songtian Cheng's expertise to expand its market presence and brand influence in the international market for valve products [21] Impact on the Company - The acquisition will be funded through the company's own resources and is not expected to adversely affect its financial status or operational results [23] - It is anticipated that the acquisition will accelerate the transformation of the municipal business model and capitalize on national policies related to municipal pipeline updates and smart city construction [24]

Core Viewpoint - The company plans to acquire an 88.2557% stake in Beijing Songtian Cheng Technology Co., Ltd. for 111 million RMB, aiming to enhance its product chain and accelerate the transformation of its municipal engineering business [1] Group 1: Acquisition Details - The acquisition agreement was signed on January 22, 2026, with Lin Songyue [1] - The target company, Songtian Cheng, specializes in the research, manufacturing, and sales of polyethylene valves for municipal pipeline networks [1] - The transaction does not constitute a related party transaction or a major asset restructuring [1] Group 2: Financial Aspects - The acquisition is valued at 157 million RMB, reflecting a value appreciation rate of 27.32% [1] - The company is using its own funds for the acquisition [1]