Group 1 - The core point of the article is that Oriental Yuhong has signed an agreement to acquire 60% of Brazilian company Novakem, which specializes in cement additives and concrete admixtures, as part of its international expansion strategy [1][6] - The number of Chinese enterprises investing in Brazil has been steadily increasing, making China a significant source of investment for Brazil, with strong economic complementarity between the two countries [2][6] - The Brazilian construction and infrastructure market is rapidly developing, with strong and sustained demand for cement additives and high-performance concrete admixtures [2][6] Group 2 - Novakem has established a strong brand reputation in the local chemical additives sector due to its advanced technology and stable product quality, supported by a capable management team [4][6] - The acquisition aims to leverage Novakem's advantages in the admixture product field and enhance Oriental Yuhong's competitiveness in the Brazilian market, while also expanding its presence in Latin America [6][8] - The transaction will integrate Novakem's brand influence, management experience, and customer resources with Oriental Yuhong's capabilities in technology research and development, product expansion, channel operations, and supply chain integration [8]

Core Viewpoint - The company, Dongfang Yuhong, is advancing its internationalization strategy by acquiring a 60% stake in Brazilian company Novakem, aiming to expand its presence in the Latin American market and enhance its overseas business operations [1][3]. Group 1: Acquisition Details - Dongfang Yuhong's wholly-owned subsidiary in Brazil plans to invest approximately 108 million Brazilian Reais (around 144 million RMB) to acquire the stake in Novakem, with the final transaction amount subject to adjustments based on operational capital and net debt at the time of closing [1]. - The acquisition agreement was signed on November 19, 2025, in Brazil, involving several individual sellers [1]. Group 2: Market Context - Brazil is the largest economy in Latin America, characterized by a stable political environment and a well-established legal system, making it an attractive destination for foreign investment, particularly from Chinese enterprises [2]. - The construction and infrastructure market in Brazil is rapidly developing, with strong and sustained demand for cement additives and high-performance concrete admixtures [2]. Group 3: Strategic Objectives - The acquisition aligns with the company's vision to become the most valuable enterprise in the global construction materials industry, leveraging Novakem's strengths in the additives sector to enhance its market position in Brazil and Latin America [3]. - The company aims to deepen its industry moat and create new profit growth points by capitalizing on Brazil's vast construction market, mineral resources, and economic growth prospects [3]. - The transaction is expected to synergize Novakem's brand influence, experienced management, and customer resources with the company's core competencies in technology research and development, product expansion, and supply chain integration [3].