Core Viewpoint - Watson Bio is acquiring a total of 13.78% equity in its subsidiary Yuxi Watson Biotechnology for approximately RMB 20 billion, which will increase its ownership from 78.26% to 92.0445% [1][2] Group 1: Equity Transfer Details - Tianjin Lanwo Investment intends to transfer 2.4793% equity of Yuxi Watson for RMB 359 million, and the board has approved the acquisition [1] - Huixiang Yuetai plans to transfer 11.3043% equity of Yuxi Watson for RMB 1.639 billion, with the board also approving this acquisition [1] - The combined equity transfer will enhance Watson Bio's control over Yuxi Watson, improving decision-making efficiency [2] Group 2: Financial Performance - Yuxi Watson's net profit for 2024 is projected to be RMB 254 million, with a net profit of RMB 268 million reported for the first three quarters of this year [2] - Watson Bio's financial report indicates an increase in profit of approximately RMB 37 million for the first nine months [2] - Yuxi Watson is a key subsidiary, contributing significantly to the company's revenue and profit, with seven out of eight vaccine products produced by Yuxi Watson [2] Group 3: Market Concerns - Some investors have raised concerns about the acquisition, suggesting potential conflicts of interest and questioning the impact on the company's cash flow [2] - The market for the 13-valent vaccine produced by Yuxi Watson is expected to be highly competitive, making future prospects uncertain [2] Group 4: Historical Investment Returns - Huixiang Yuetai acquired 11.30% equity in Yuxi Watson for RMB 650 million in 2018 and is now selling it for RMB 1.639 billion, yielding a return of approximately 2.52 times [3] - Tianjin Lanwo purchased 21.5% equity in Yuxi Watson for RMB 649.6 million in 2012 and is selling 2.4793% for RMB 359 million, achieving a return of about 4.78 times [3]