Core Viewpoint - Daon Co., Ltd. plans to acquire 100% equity of Anhui Bost New Materials Co., Ltd. for 33 million yuan to optimize its product layout and extend its presence in the cable new materials sector [1][2][3] Group 1: Acquisition Details - The acquisition was approved during the fifth board meeting on April 23, and Anhui Bost will become a wholly-owned subsidiary of Daon [1] - The transaction price for the acquisition is set at 33 million yuan [1] - Anhui Bost reported revenues of 172 million yuan in 2023 and 157 million yuan from January to November 2024, with corresponding net profits of approximately 3.30 million yuan and 3.37 million yuan [1] Group 2: Strategic Intent - The acquisition aims to enhance Daon's product layout and extend its industrial chain, thereby improving overall competitiveness and promoting long-term development [2] - Daon is particularly focused on the cable new materials market, which is expected to see significant demand growth, especially in electric vehicles and subsea cables [3] Group 3: Valuation and Financials - The valuation of Anhui Bost was assessed using two methods, with a difference of 15 million yuan; the asset-based approach was ultimately chosen, valuing Anhui Bost at approximately 33 million yuan [3] - The asset-based valuation indicated a net asset book value of 28.42 million yuan, with an appraisal value of 33 million yuan, reflecting a 16.13% increase [3] - Anhui Bost has reported negative cash flow from operating activities of -94.27 million yuan in 2023 and -85.93 million yuan from January to November 2024 [4]