Zhejiang Sunflower to acquire Xipu Materials, Beide Pharmaceutical in share, cash deal

Zheshang Securities has issued a verification opinion on Zhejiang Sunflower Great Health Technology Co.'s planned asset acquisition, noting it constitutes a connected transaction. The company intends to acquire 100% of Zhangzhou Xipu Materials Technology Co. and 40% of Zhejiang Beide Pharmaceutical Co. The acquisitions will be funded by issuing shares and cash to transaction counterparts, including Shanghai Xipu Technology Co. and Shaoxing Xiangrikui Investment Co. Additionally, Zhejiang Sunflower plans to raise supporting funds for the transaction. Upon completion, both Xipu Materials and Beide Pharmaceutical will become wholly-owned subsidiaries.

The asset valuation for the transaction is still pending, with the final price to be determined based on appraisal results and mutual agreement. This transaction is classified as a significant asset restructuring and a connected transaction. The company's board of directors and audit committee have approved the preliminary proposals, with related parties abstaining from voting.

Zhejiang Sunflower's shares experienced abnormal fluctuations on September 22 and 23, 2025, with a cumulative deviation of over 30% in closing prices. The company confirmed no undisclosed material information, no changes in its operational or external environment, and that its controlling shareholder had not traded company shares during this period. The company will proceed with further approvals and disclosures as the transaction progresses.