According to the announcement from ZHYL (300981.SZ), in order to implement the company's strategic plan, expand overseas business space, and enhance the company's overall competitive strength, it has agreed that its subsidiary ZHYL International (Hong Kong) Trading Co., Ltd. (hereinafter referred to as "ZHYL Hong Kong", a wholly-owned subsidiary of the company) will sign a share purchase agreement and a shareholder agreement with Guilin Hengbao Protective International Co., Ltd. (hereinafter referred to as "Hengbao International", which is wholly owned by Guilin Hengbao Health Protection Co., Ltd., a holding subsidiary in which the company holds 70% of the shares). ZHYL Hong Kong will use its own funds to acquire a total of 75% equity in Southeast Asia SEA3 Company (hereinafter referred to as "the target company") for a total cash consideration of RMB 6.97 million, and it is agreed that after the equity transfer, ZHYL Hong Kong and Hengbao International (which will first increase its capital by RMB 10 million from Guilin Hengbao Health Protection Co., Ltd.) will respectively increase their capital in SEA3 Company by RMB 52.9755 million and RMB 22.7038 million, totaling a capital increase of RMB 75.6794 million.

The target company SEA3 primarily engages in the production and sales of medical-grade gloves. The target company possesses EU ISO13485 quality management system certification, EU CE certification, and US FDA 510(k) certification, among others, and has complete export qualifications for Europe and the United States.

Upon completion of this transaction, the company and SEA3 Company can achieve complementary advantages in supply chain resources, domestic and international channels, management operations, technology research and development, and high-end talent, thereby leveraging resource integration advantages