Shanghai Hile Bio-Technology to boost stake in Shaanxi Ruisheng Bio-Technology

Shanghai Hile Bio-Technology Co. will hold its third extraordinary general meeting of shareholders on December 16, 2025, to approve the acquisition of a 41% stake in its controlled subsidiary, Shaanxi Ruisheng Bio-Technology Co. The acquisition, detailed in a November 28, 2025 board meeting, is valued at 399.3 million yuan and will be settled by offsetting a previously owed transaction difference from Meilun Company. This transaction will increase Shanghai Hile Bio-Technology's ownership in Ruisheng Bio-Technology from 55% to 96%.

This acquisition follows Meilun Company's inability to timely refund a transaction difference of 399.3 million yuan, with 50 million yuan already paid. The 41% stake is valued based on an asset appraisal report dated September 12, 2025. Meilun Company has also pledged its remaining 4% equity, valued at 38.96 million yuan, and converted the 50 million yuan payment into a security deposit to guarantee performance and indemnification obligations.

Ruisheng Bio-Technology made a profit of 138.1659 million yuan in 2024 and has projected net profits of 50 million yuan for 2025 and 58 million yuan for 2026. As of the third quarter of 2025, Ruisheng Bio-Technology's net profit was 43,056,704.37 yuan. The return of the security deposit is contingent on Ruisheng Bio-Technology achieving its 2025 net profit target and will be limited to 50% of the total deposit amount.