Kinglai subsidiary expands packaging business with strategic acquisition

Kunshan Kinglai Hygienic Materials' wholly-owned subsidiary, Shandong Bihai Packaging Materials Co., Ltd. ("Bihai Packaging"), will invest RMB 156,955,102 in Shandong Anpu Smart Technology Co., Ltd. ("Anpu Smart"). This will be done by subscribing to newly added registered capital of RMB 156,122,449, with the remaining RMB 1,632,653 allocated to capital reserves. This investment will increase Anpu Smart's registered capital from RMB 15,000,000 to RMB 30,612,244.9, giving Bihai Packaging a 51% stake and making Anpu Smart a holding subsidiary. The funds will be used for Anpu Smart's working capital and debt repayment.

The investment aims to address Bihai Packaging's saturated production capacity and capitalize on growth opportunities in the sterile packaging materials industry, enhancing Kunshan Kinglai Hygienic Materials' competitive position and market share in food packaging. The transaction was approved by the company's Sixth Board of Directors at its Tenth Meeting on December 3, 2025. This external investment is within the board's approval authority.

As of September 30, 2025, Anpu Smart's total assets were RMB 401,837,024, total liabilities were RMB 258,516,934, and net assets were RMB 143,320,090. The valuation report indicated an appraised value of RMB 409,373,700 for total assets and RMB 150,856,800 for shareholder equity, reflecting an increase of 5.26% over the book value.