Core Viewpoint - The acquisition of 82.54% of Wuxi Baiaode Biological Science Co., Ltd. by Kanglong Chemical for 1.346 billion yuan is a related party transaction, with the valuation of Wuxi Baiaode set at 1.63 billion yuan, reflecting a significant discount compared to its previous valuations [3][4][12]. Group 1: Acquisition Details - Kanglong Chemical plans to fund the acquisition through bank loans (at least 50%) and some of its own funds [4]. - The valuation of Wuxi Baiaode has decreased by 41.6% from its 2023 post-investment valuation of approximately 2.57 billion yuan to 1.5 billion yuan [4]. - The price-to-earnings ratio for the acquisition valuation is 26, which is considered reasonable compared to industry averages [4][5]. Group 2: Shareholder Structure and Returns - The existing shareholders of Wuxi Baiaode include controlling shareholders, management team shareholders, and other financial investors, with the controlling shareholders holding approximately 47.22% of the shares [5]. - The investment returns for related parties involved in the acquisition are substantial, with Kang Junningyuan achieving a return rate of 151%, Kang Junzhongyuan at 58.57%, and Yufeng Investment at 38.17% [6][7][9]. Group 3: Company Performance and Future Outlook - Wuxi Baiaode has maintained steady performance, with revenues of 241 million yuan and 200 million yuan for 2024 and the first nine months of 2025, respectively [10]. - Kanglong Chemical's revenue for the first three quarters of 2025 was 10.086 billion yuan, showing a year-on-year growth of 14.38% [13]. - The acquisition aims to enhance Kanglong Chemical's capabilities in early antibody discovery and optimization, integrating Wuxi Baiaode's strengths in structural biology and drug discovery services [12].