Huafeng Chemical sells logistics subsidiary for 348 million yuan

Huafeng Chemical Co., Ltd. has approved the transfer of its 100% equity in wholly-owned subsidiary Chongqing Futong Logistics Co., Ltd. to Zhejiang Huafeng Logistics Co., Ltd., a related party. This transaction constitutes a connected transaction. The transfer price has been set at 348 million yuan, determined through negotiation based on the income approach valuation.

The valuation report assessed Futong Logistics' total shareholder equity at 348 million yuan as of September 30, 2025. This valuation approach, which focuses on future profitability, was selected as the final valuation method. Following the completion of this equity transfer, Huafeng Chemical will no longer hold any shares in Futong Logistics, aligning with the company's strategy to optimize asset allocation and concentrate on its core business.

The transaction is expected to enhance operational efficiency and prevent resource dispersion, with both parties affirming the fair and transparent pricing based on the independent appraisal. This move is intended to support the company's current development needs and future strategic planning, without negatively impacting its financial health or independence.