Core Viewpoint - The controlling stake of Hehua Co., Ltd. is being transferred from Ningbo Yinyi Holdings to Ningbo Zhongzhe Ruihe Enterprise Management Consulting Co., Ltd. after a failed previous transaction [1][2] Group 1: Transaction Details - Ningbo Yinyi Holdings plans to transfer 87 million shares of Hehua Co., Ltd. (23.76% of total shares) and all receivables for a total consideration of approximately 632 million yuan [1][2] - The share portion of the transaction is valued at 586 million yuan, while the receivables are valued at 46.11 million yuan [1][2] - The shares involved in the transaction are currently under pledge and require consent from the pledgee [1] Group 2: Company Background - Hehua Co., Ltd. is primarily engaged in the research, production, and sales of pharmaceutical intermediates, as well as urea processing and sales [2] - The company has a subsidiary, Nansong Pharmaceutical, which specializes in the development and production of pharmaceutical intermediates, including anti-malarial and progestogen products [2] Group 3: Historical Context - The controlling shareholder, Ningbo Yinyi Holdings, has faced liquidity crises since 2019, leading to restructuring applications submitted to the Ningbo Intermediate People's Court [3][4] - The previous attempt to transfer control to Beijing Shending was unsuccessful due to unfulfilled payment obligations, resulting in the automatic termination of the cooperation intention [3]

Core Viewpoint - The announcement reveals a significant change in the ownership structure of Hehua Co., Ltd. (河化股份), with the controlling shareholder shifting from Ningbo Yinyi Holdings Co., Ltd. to Ningbo Zhongzhe Ruihe Enterprise Management Consulting Co., Ltd. This transaction involves the transfer of 87 million shares, representing 23.76% of the total share capital, for a total consideration of 632 million yuan [1]. Group 1: Ownership Change - Ningbo Yinyi Holdings plans to transfer 87 million shares and all receivables from Hehua Co. to Zhongzhe Ruihe for a total price of 632 million yuan [1]. - If the transaction is completed, the controlling shareholder will change to Zhongzhe Ruihe, and the actual controller will change from Xiong Xuqiang to Yang Herong [1]. - Zhongzhe Ruihe was established in July 2025 and is wholly owned by Zhongzhe Group, focusing on enterprise management consulting and financial consulting [1]. Group 2: Company Performance - In the first half of 2025, Hehua Co. reported revenue of 80.83 million yuan, a decrease of 37.02% year-on-year, while net profit attributable to shareholders increased by 45.56% to 3.84 million yuan [3]. - The revenue decline was attributed to management optimization and resource allocation, which improved per capita output, as well as the recovery of previously written-off bad debts [3]. - The company's subsidiary, Nansong Pharmaceutical, reported revenue of 42.67 million yuan, down 31.52%, while Hehua Biological reported revenue of 38.10 million yuan, down 42.28% [3]. Group 3: Business Overview - Hehua Co. primarily engages in the research, production, and sales of pharmaceutical intermediates and urea processing and sales [2]. - Its subsidiary, Nansong Pharmaceutical, specializes in pharmaceutical intermediates, with products sold domestically and to markets such as Taiwan, India, and Finland [2]. - Hehua Biological leverages its established reputation in urea sales and operates through third-party processing [2].

Core Viewpoint - Hehua Co., Ltd. (河化股份) announced a suspension of its stock trading due to a planned change in control, with the suspension expected to last no more than two trading days [2][4]. Group 1: Company Background - Hehua Co., Ltd. primarily engages in the research, production, and sales of pharmaceutical intermediates, as well as the commissioned processing and sales of urea [5]. - The company’s subsidiary, Nansong Pharmaceutical, specializes in the development and production of pharmaceutical intermediates, with products sold domestically and internationally, including to countries like India and Finland [5]. - Hehua Co., Ltd. has undergone two changes in actual control since its establishment in 1993, with the current controlling shareholder being Ningbo Yinyi Holdings Co., Ltd. (银亿控股) since 2016 [5]. Group 2: Recent Developments - Ningbo Yinyi Holdings is currently planning a share transfer that may lead to a change in the controlling shareholder and actual controller of Hehua Co., Ltd. [4]. - The company reported a revenue of 40.83 million yuan in Q1, a year-on-year decrease of 34.05%, but achieved a net profit of 1.36 million yuan, marking a turnaround from losses [5]. - Hehua Co., Ltd. has faced operational challenges, including a significant decline in performance after the acquisition of Nansong Pharmaceutical, which was intended to pivot the business towards fine chemical production [8]. Group 3: Financial and Market Performance - Hehua Co., Ltd. has seen its stock price increase by over 40% this year, with a notable surge on July 30, when the stock hit the daily limit [9]. - The company is focusing on enhancing its core business and expanding market reach to identify new profit growth points [9].

Core Viewpoint - The company, Hehua Co., Ltd. (河化股份), is undergoing a potential change in its controlling shareholder, which may lead to a shift in actual control, as notified by its major shareholder, Ningbo Yinyi Holdings Co., Ltd. [1] Group 1: Shareholder Changes - Hehua Co., Ltd. has received a notification from its controlling shareholder regarding the planning of a share transfer, which may result in a change of control [1] - The company has applied for a trading suspension for its stock starting from July 31, 2025, to ensure fair information disclosure and protect investor interests [1] Group 2: Business Overview - Hehua Co., Ltd. primarily engages in the research, production, and sales of pharmaceutical intermediates and urea processing and sales [1] - The company’s subsidiary, Nansong Pharmaceutical, specializes in the development and production of pharmaceutical intermediates, with key products including anti-malarial, progestogen, and nutritional intermediates, serving both domestic and international markets [1] Group 3: Operational Strategy - The company has established a comprehensive operational framework, including R&D, production facilities, quality inspection centers, and sales departments to meet market demands [2] - Hehua Co., Ltd. plans to expand its product chain, enhance management efficiency, increase R&D investment, and strengthen market development for new products as part of its 2025 operational plan [2][3] Group 4: Financial Performance - In 2024, Hehua Co., Ltd. reported a revenue of 212 million yuan, reflecting a year-on-year growth of 12.81%, and a net profit of 79.25 million yuan, marking a significant increase of 785.62% [3] - In the first quarter of this year, the company achieved a revenue of 40.83 million yuan and a net profit of 1.36 million yuan, indicating a turnaround from previous losses [3]