BBMG Corp to acquire 90% stake in Hongpeng Concrete

BBMG Corp (SSE:601992) announced its plan to acquire a 90% stake in Handan Yongnian Hongpeng Commercial Concrete Co., Ltd. ("Hongpeng Concrete") for approximately 34.18 million yuan (US$4.7 million). The acquisition will be executed through BBMG's subsidiary, Handan JinYu Taihang Commercial Concrete Technology Co., Ltd. The transaction price is based on a preliminary valuation using the asset-based method, subject to final approval by relevant state-owned asset regulators. Hongpeng Concrete, established in 2019, operates two concrete production lines with an annual capacity of 1.2 million cubic meters. The deal is expected to enhance BBMG's presence in the Handan region, complementing existing operations and creating synergies with the company's cement business. The acquisition is not expected to have a material impact on BBMG's financial results.