On December 31, 2025, the buyer, Guangzhou CHEERWIN Holding Co., Ltd. (a wholly-owned subsidiary of the Company), the sellers (Zuo Yulong, Liu Xuchun, Bai Shuchang, He Jianwei, He Jianning, Hu Jianguo, Xin Chuansan, Shi Jingshan, Yuan Xinle, Wang Xuemin, Zhou Ziyan, and Zhang Kunyuan), and the target company, Hebei Kangda Co., Ltd., entered into an agreement. Pursuant to this agreement, the buyer conditionally agreed to acquire the target equity (representing 100% of the equity in the target company) from the sellers for a maximum potential consideration of RMB 450 million (equivalent to approximately HKD 495 million). Following the completion of the acquisition, the target company will become an indirect wholly-owned subsidiary of the Company, and the financial performance of the target group will be consolidated into the Group's financial statements.
The target company is a limited liability company established under Chinese law, primarily engaged in the research, development, production, and sales of household insecticides, detergents, daily chemical products, and aerosol products. The Group is undertaking this strategic acquisition to further enhance its market competitiveness in the home care product category within the northern region of China and to increase the breadth and depth of its coverage in the domestic end-market.
Upon completion, the Group will integrate resources across multiple dimensions and angles to strengthen the synergistic effects between its existing home care business and the target company's operations, thereby creating greater value for shareholders: 1. Rapid Expansion in the Northern Home Care Market: The target company has been deeply cultivating the northern Chinese market for over 30 years, establishing itself as a leading enterprise in home care in the region, accumulating substantial customer resources and possessing promising development prospects. This acquisition will help the Group further optimize its industrial layout in the northern region. 2. Achieving Dual-Brand Synergy and Efficiency Gains: The "Chaowei + Qiangshou" dual-brand strategy will create complementary advantages, driving synergies in product innovation, technological R&D, and supply chain management, thereby enhancing the Group's market competitiveness and operational efficiency. 3. Achieving Product Category Leadership and Consolidating Market Position: Through this acquisition, the Group can rapidly increase its market share in categories such as household insecticides and home cleaning, consolidating its leading industrial position. 4. Boosting Revenue and Profit, Enhancing Overall Financial Performance: The target company demonstrates consistently robust financial metrics; post-acquisition, it is expected to increase the Group's revenue scale and profitability, creating sustained long-term value for the Group and its shareholders.
