Jiangxi Guotai Group (603977.SH) acquires 100% equity of Beikuang Explosion Anchor, stabilizing the company's foundation in the civil explosive industry.

Jiangxi Guotai Group (603977.SH) announced that the company has successfully acquired 100% equity of Beijing Kuangye Baomao Technology Engineering Co., Ltd. (referred to as "Beijing Kuangye Baomao" or the "target company") publicly listed on the Beijing Property Exchange through an open bid process, with a transaction price of 110 million RMB. After successfully acquiring 100% equity of Beijing Kuangye Baomao, the company's on-site mixed explosive production capacity will meet industry planning requirements, which is beneficial for stabilizing the company's foundation in the civil explosive industry. The operating entity and core business of Beijing Kuangye Baomao are located in Jiangxi Province, highly synergistic with the company's market area. The acquisition will help safeguard the core development interests of the civil explosive business for the company. Leveraging Beijing Kuangye Baomao's rich experience in underground blasting and mining engineering, as well as its technical and talent advantages, will achieve a synergistic effect, enhancing Jiangxi Guotai Group's ability to provide integrated solutions for large mines. Beijing Kuangye Baomao's on-site mixed explosive production capacity and high-level blasting operation qualifications have significant strategic value in increasing the company's civil explosive business capacity, industry position, and comprehensive strength in blasting services. This acquisition is in line with the company's implementation of the national policy for the transformation and upgrading of the civil explosive industry, and the provincial state-owned assets and enterprises' requirement to focus on core responsibilities and industries to enhance core competitiveness. It also aligns with the development requirements of the civil explosive industry to encourage mergers and acquisitions, increase industry concentration, and strengthen the civil explosive industry.