Oriental Yuhong acquires stake in Brazil's Novakem

Beijing Oriental Yuhong Waterproof Technology announced the acquisition of a 60% equity stake in Novakem Indústria Química Ltda. of Brazil through its wholly-owned subsidiary, OYH BRAZIL LTDA., for BRL 108 million. The acquisition, approved by the company's board on December 19, 2025, aligns with Oriental Yuhong's internationalization strategy and aims to strengthen its market position in the Brazilian and Latin American markets. The transaction is not a related party transaction or a major asset restructuring.

The company also released its 2026 annual forecast for daily related party transactions, totaling up to RMB 750 million (tax included), primarily involving the purchase and sale of materials and construction services with Beijing High-Tech Environmental Technology Co., Ltd. These transactions, approved by the board on December 19, 2025, are based on market prices and are considered normal business operations that will not affect the company's independence.

Furthermore, an announcement was made regarding the 2021 employee stock ownership plan, which is set to expire on June 22, 2026. As of the disclosure date, the plan holds 2,000,000 shares of the company's stock, representing 0.0837% of the total share capital. The management committee will decide on the sale of these shares based on market conditions before the expiration date.