Shanghai Huafon Aluminium Corporation (601702.SH) is planning to acquire 100% of the equity of Huafeng Pu'en for 100 million yuan.

Shanghai Huafon Aluminium Corporation (601702.SH) announced that the company has signed a share transfer agreement with Huafeng Group Limited (referred to as "Huafeng Group"), to acquire 100% equity of Shanghai Huafeng Poen Polyurethane Co., Ltd. (referred to as "Huafeng Poen") held by Huafeng Group for 100 million yuan in cash. The announcement stated that Huafeng Poen is located at No. 1369, Jinshan District, Shanghai, neighboring Shanghai Huafon Aluminium Corporation. Due to the original business operations not meeting expectations, it is currently in a state of suspension. Shanghai Huafon Aluminium Corporation is currently facing a shortage of production capacity due to full orders, leading to a tightening of storage space for raw materials, semi-finished products, finished products, and hardware spare parts within the factory. Huafeng Poen has a large amount of vacant land and mature factories and warehouses, and is adjacent to the company, which can greatly ease the problem of material circulation and storage within the company. Furthermore, after the completion of this transaction, the company will terminate the original polyurethane insulation material business of Huafeng Poen, and utilize its space and factories for the research and development, as well as production of aluminum heat transfer materials and stamped parts.