Jiangsu HHCK Advanced Materials (688535.SH) plans to spend 480 million yuan to acquire a 30% stake in Huawei Electronics, which will help integrate industry capacity.

Jiangsu HHCK Advanced Materials (688535.SH) announced that the company plans to acquire 30% equity of Huawei Electronics Co., Ltd. (referred to as "Huawei Electronics" or the "target company") through equity acquisition using the total additional funds raised of approximately 287 million yuan, as well as interest income, financial income (specifically based on the redemption amount of cash management products) and own funds/self-financing, with a transaction price of 480 million yuan (corresponding to the subscribed capital of the target company of 259.7726 million yuan). It is reported that Huawei Electronics is specialized in the research and industrialization of semiconductor and integrated circuit packaging materials, and is a key national high-tech enterprise, a base for the industrialization of the achievements of the National 863 Program, a national specialized and new giant enterprise, and has a national post-doctoral research station and the Jiangsu Province Integrated Circuit Packaging Materials Engineering Technology Research Center. According to PRISMARK statistics, in 2023, Huawei Electronics ranks third in global sales volume among epoxy resin encapsulant companies, and fourth in sales revenue. In the domestic epoxy resin encapsulant industry, both sales revenue and sales volume rank first, with a certain leading position in the industry. This acquisition will be beneficial for the company to integrate industry capacity and make a positive contribution to the company's future expansion of industrial scale and enhancement of industry competitiveness.