Hubei Yihua waives right of first refusal for subsidiary stake

Hubei Yihua Chemical Industry Co., Ltd. announced its decision to waive the right of first refusal for a 25% equity stake in its controlled subsidiary, Xinjiang Yihua Chemical Co., Ltd. This waiver, approved by the board of directors on September 22, 2025, follows an intra-group gratuitous transfer from Yichang Gaoxin Investment Development Co., Ltd. to Yichang ChanTou Industrial Investment Development Co., Ltd., both wholly-owned by ChanTou Group. This transfer does not constitute a related party transaction or a major asset restructuring.

Simultaneously, Hubei Yihua Chemical Industry Co., Ltd. also announced revisions to its business scope and Articles of Association. The changes involve expanding the company's business activities to include the production and operation of third-class non-pharmaceutical controlled chemicals, mobile pressure vessel/gas cylinder filling, inspection and testing services, technology import and export, and goods import and export.

The financial impact of the equity transfer is deemed minor, as it will not alter Hubei Yihua's equity ratio in Xinjiang Yihua or affect the scope of its consolidated financial statements. Xinjiang Yihua reported total assets of CNY 2,034,312.61 and a net profit of CNY 163,772.61 for the period ended December 31, 2024.