Hubei Yihua completes major asset acquisition of Yichang Xinfatou

Hubei Yihua Chemical Industry (SZSE:000422) has completed the major asset acquisition of Yichang Xinfatou Industry Investment, according to announcements and reviews by financial and legal advisors. The acquisition, valued at CNY320,793.24, was executed via cash payment to Hubei Yihua Group, the parent company, and gives Hubei Yihua full ownership of Yichang Xinfatou. As Yichang Xinfatou holds a 39.403% stake in Xinjiang Yihua, this acquisition increases Hubei Yihua's control over Xinjiang Yihua to 75%, effectively making it the controlling shareholder of Xinjiang Yihua. Regulatory approvals, including those from the Yichang State-owned Assets Supervision and Administration Commission, have been secured. Hubei Yihua has completed the asset transfer and made the first payment of CNY163,604.5524. The deal is expected to enhance Hubei Yihua’s operational control of Xinjiang Yihua and doesn't involve significant issues regarding assets, personnel, or financials. The independent financial advisor, Huatai United Securities, has deemed the transaction compliant and without obstacles.