Sichuan Dowell Science and Technology Inc. (300535.SZ) plans to acquire 100% equity of Shanghai Aio to meet production capacity and warehousing needs.

Sichuan Dowell Science and Technology Inc. (300535.SZ) announced that the company plans to use its own funds to acquire 100% equity of Shanghai Aio Fine Chemical Co., Ltd. (referred to as "Shanghai Aio") through debt-financing. The transfer price is RMB 13.8125 million; after the equity delivery, Shanghai Aio still has a remaining current liability balance of RMB 5.55 million. The company or its wholly-owned subsidiary plans to make an additional investment of RMB 23 million for debt repayment and funding for operational needs. The announcement states that Shanghai Aio is an enterprise in the D-grade chemical industry park Shanghai Carbon Valley Green Bay Industrial Park, covering an area of 13,302 square meters. It is physically connected to the company's wholly-owned subsidiary, Shanghai Jinshi Chemical Co., Ltd. After this transaction is completed, it can be managed together with Shanghai Jinshi Chemical Co., Ltd. The acquisition of Shanghai Aio this time is due to the continuous growth in the company's chemical sector sales, which requires expansion of production capacity and warehousing capabilities, as well as the strategic need to expand the company's chemical product series.