Hile Bio-Technology adjusts Ruisheng Bio-Technology acquisition amid performance drop

Shanghai Hile Bio-Technology is proceeding with the acquisition of the remaining 41% stake in Shaanxi Ruisheng Bio-Technology Co., Ltd., increasing its ownership to 96%. This decision comes despite Ruisheng's third-quarter 2025 revenue of 26.77 million yuan and net profit of 9.29 million yuan, a notable decline. The company attributes this downturn to the end of a 3% simplified VAT collection policy, increasing the tax rate to 13%, and heightened market competition leading to price reductions.

The original valuation of Ruisheng Bio-Technology at 1.7 billion yuan has been reassessed to 974 million yuan, reflecting the challenging market conditions. Hile Bio-Technology has accepted an equity-for-debt scheme, converting a 399 million yuan receivable into equity, of which 50 million yuan was previously settled in cash. This avoids a significant bad debt risk and potential impairment.

Following the transaction, Hile Bio-Technology will assume full control of Ruisheng's management and operations. This increased control is expected to facilitate better resource allocation and integration, aiming to stabilize and improve Ruisheng's performance. The company states its due diligence was thorough, considering external factors affecting Ruisheng's performance, and the adjusted terms are deemed to protect shareholder interests.