CHEERWIN GP (06601) plans to acquire 100% equity of Hebei Kanda for a maximum of 450 million yuan.

CHEERWIN GP (06601) announces that on December 31, 2025, the buyer, Guangzhou Chaoyun Holdings Co., Ltd. (a wholly-owned subsidiary of the Company), the sellers (Zuo Yulong, Liu Xuchun, Bai Shuchang, He Jianwei, He Jianning, Hu Jianguo, Xin Chuansan, Shi Jingshan, Yuan Xinle, Wang Xuemin, Zhou Ziyan, and Zhang Kunyuan), and the target company Hebei Kangda Co., Ltd. entered into an agreement. Under this agreement, the buyer conditionally agrees to acquire the target equity (100% of the equity of the target company) from the sellers, at a maximum possible price of RMB 450 million (equivalent to approximately HK$495 million). Upon completion, the target company will become an indirect wholly-owned subsidiary of the Company, and the financial performance of the target group will be consolidated into the group's financial statements. The target company is a limited company established under Chinese law, mainly engaged in the research, development, production, and sales of household insecticides, detergents, daily chemical products, and aerosol products. The strategic acquisition by the group aims to further enhance the group's market competitiveness in the household care category in the northern region and expand the coverage and depth of the domestic terminal market in China. After completion, the group will integrate resources in multiple aspects and angles, strengthen the synergies between the group's existing household care business and the target company's business, thereby creating greater value for shareholders: 1. Rapid expansion of the northern household care market: The target company has been deeply rooted in the northern Chinese market for over 30 years and is a leading enterprise in household care in the northern region of China, with a rich customer base and good development prospects. The acquisition will help the group further optimize its industrial layout in the northern region. 2. Achieving synergy and efficiency enhancement of dual brands: The complementary advantages of the "Superpower + Gunman" dual brands promote product innovation, technological research and development, and multi-dimensional synergy in the supply chain, enhancing the group's market competitiveness and operational efficiency. 3. Achieving leadership in product categories, consolidating the group's market position: Through the acquisition, the market share of household insecticides, household cleaning, and other categories can be quickly increased, consolidating the group's leading position in the industry. 4. Increase revenue and profit, improve the overall financial performance of the group: The financial indicators of the target company are consistently stable, and after completion, it will increase the group's revenue scale and profit performance, creating sustained long-term value for the group and shareholders.