YIP'S CHEMICAL plans to acquire approximately 60.0% equity interest in Beijing Xinnuo Haibo Petrochemical Technology

According to the Zhitong Finance APP, YIP'S CHEMICAL (00408) announced that on October 24, 2025, the buyer YIP'S QINGYUAN MANAGEMENT (Shenzhen) (a wholly-owned subsidiary of the company) and the seller (Mr. Zhang Guorui and Ms. Liu Qing) signed an acquisition agreement for the target company Beijing Xinnuo Haibo Petrochemical Technology and Foreign-invested Enterprise. The buyer has conditionally agreed to acquire, while the seller has conditionally agreed to sell shares, totaling approximately 60.0% equity interest in the target company. The target company is a leading chemical gas emission management enterprise in China, focusing on research and development, design, manufacturing, and providing professional system solutions to manage chemical gas emissions generated during the production and transportation of chemicals and oil and gas. The initial consideration is RMB 288 million. Subject to the fulfillment of profit guarantees during the performance commitment period, the contingent consideration of up to RMB 96 million shall be paid by the buyer to the seller; or a return of up to RMB 33.6 million shall be paid by the seller to the buyer. Therefore, the maximum consideration amount is RMB 384 million, and the minimum consideration amount is RMB 254.4 million. The initial consideration, contingent consideration (if any), and return (if any) shall be paid in cash. The group aims to transform into a refined chemical enterprise development platform and drive future growth, actively seeking opportunities beyond its existing core business, particularly focusing on the chemical field related to environmental protection and new energy. At the same time, the explored opportunities must create synergies with the group's core competencies and promote long-term development. This acquisition allows the group to expand its business footprint into a continuously growing market, namely the management of chemical gas emissions released during the production and transportation of chemicals and oil and gas. With the Chinese government actively promoting industrial emission reduction policies and strengthening support for environmental protection regulations, the demand for environmental management solutions is expected to grow steadily, with considerable market potential. The target group is a leading chemical gas emission management enterprise in China, focusing on research and development, design, manufacturing, and providing professional system solutions to manage chemical gas emissions generated during the production and transportation of chemicals and oil and gas. This can assist clients in converting gases that would otherwise be wasted into economically valuable resources while adopting more environmentally friendly processes to comply with increasingly stringent environmental regulatory requirements. The target group's technology has been recognized by the industry, and its equipment has been widely used in the operations of a stable customer base, including well-known energy companies, large local and multinational chemical companies, and Chinese state-owned enterprises. Seller A is the founder of the target group, bringing rich industry experience, along with other senior management and R&D teams. The target group has been deeply engaged in this field for many years and has established a solid technological barrier. The target group holds over 10 invention patents and 20 software copyrights and has made progress in the recovery and treatment technology of chemical gases. The group believes that the target group has firmly established its leadership position in the field of chemical gas emission management and will continue to grow with the support of the Chinese government's emission reduction policies and environmental regulations. Meanwhile, the inherent economic benefits of the target group's products and services will continue to attract more customers and expand the customer base. The group will enhance the operational efficiency of the target group by optimizing its management system and continuously drive its business growth, as well as leverage the group's existing upstream supplier network to explore new business opportunities and develop overseas markets At the same time, it will continue to invest research and development resources, expand and strengthen its technological reserves, and further consolidate its market position. This acquisition provides the Group with a good opportunity to diversify its revenue sources and create long-term growth points and value for shareholders by expanding its business into the specialized field of chemical gas emission management. The board believes that this acquisition strategically aligns with the Group's goals: enhancing technological capabilities, entering niche markets within the chemical industry, and seizing the increasing demand for environmental solutions due to increasingly stringent environmental regulations