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 - 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]