---
title: "YouFa Group plans to acquire 70.96% equity of Jilin Huaming for 47.4 million yuan"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/243473743.md"
description: "YouFa Group plans to acquire 70.96% equity of Jilin Huaming for 47.4 million yuan, aiming to enhance market competitiveness and production-sales scale in Jilin Province and surrounding areas. After the acquisition, the company will increase its registered capital to 297 million yuan along with other shareholders. This move will fill the capacity gap, strengthen brand influence, promote the national layout strategy, enhance profitability, and consolidate its leading position in the welded steel pipe industry"
datetime: "2025-06-06T11:54:04.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/243473743.md)
  - [en](https://longbridge.com/en/news/243473743.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/243473743.md)
generator: "portal-rs"
---

# YouFa Group plans to acquire 70.96% equity of Jilin Huaming for 47.4 million yuan

According to the Zhitong Finance APP, YouFa Group (601686.SH) announced that the company plans to use its own funds to acquire 70.96% equity of Jilin Huaming Pipe Industry Co., Ltd. (hereinafter referred to as "the target company" or "Jilin Huaming") from Panshi Jianlong Steel Co., Ltd. (referred to as "Panshi Jianlong") and Shenyang Leiming Steel Pipe Co., Ltd. (referred to as "Shenyang Leiming") through a cash transaction, with a total transfer price of 47.40128 million yuan. After the equity transfer, the company plans to increase capital in proportion with other shareholders of the target company, with a capital increase price of 1 yuan per share, bringing the registered capital of the target company to 297 million yuan.

Jilin Huaming's main products are welded steel pipes, which belong to the metal products industry and have a certain competitive relationship with the company in Jilin Province and surrounding areas. Before the acquisition, the company had not established similar production bases in Jilin Province and surrounding areas. If products are transported to the local market for sale, various costs such as logistics, transportation, and marketing management are relatively high, and the supply cycle is longer with lower turnover efficiency, affecting the market competitiveness of the products. After the acquisition, Jilin Huaming will fill the capacity gap of similar products in Jilin Province and surrounding areas for the company, which is conducive to rapidly enhancing local product competitive advantages, production and sales scale, and market share, as well as enriching product specifications and categories. This aligns with the company's national layout strategy and the need to actively integrate existing capacity, promote healthy competition in the industry, and support healthy development. Additionally, calculations show that after the acquisition, injecting the company's advantageous resources can help Jilin Huaming achieve profitability in a relatively short period, reflecting positive economic value and social benefits.

Through this transaction, the company will effectively promote its national layout strategy, increase market share and brand influence in the Northeast region, thereby enhancing the company's sustainable profitability and comprehensive development strength, and further consolidating and strengthening its leading position in the domestic welded steel pipe industry

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**