FULONGMA GROUP (603686.SH) plans to acquire 100% equity of Huanhai Environmental Protection for 257 million yuan to integrate industrial chain resources of its equipment business.

FULONGMA GROUP (603686.SH) announced that the company plans to acquire 100% equity of Fujian Huanhai Environmental Protection Equipment Co., Ltd. ("Huanhai Environmental Protection") by cash payment, with a transaction consideration of 257 million yuan. Among the counterparties to this transaction, non-related parties of the company, namely Fujian Huanhai Investment Real Estate Co., Ltd., Wang Donghai, Liu Zhika, Zhao Lingbing, Jiang Dingyi, Lin Ruchun, Zhang Yanchai, and Lin Rongqing, collectively hold 93.8462% equity, while related parties Zhang Guizhou, Zhang Xiaolan, and Zhang Xiaoxia collectively hold 6.1538% equity. The source of funds is self-owned funds and self-raised funds. After the completion of this acquisition, the target company will become a wholly-owned subsidiary of the company. This transaction aims to further integrate the industrial chain resources of the company's equipment business through equity acquisition, reduce dependence on the outsourcing model in core processing links, and enhance the comprehensive competitiveness and sustainable profitability of the company's equipment manufacturing business: on the supply side, it can lock in core processing capacity, avoid the risk of unstable external supply, and ensure the scheduling and delivery of the company's equipment orders; on the cost side, it can integrate upstream procurement scale, optimize the cost structure, and reduce unit production costs; on the quality and technology side, it can strengthen the unified management of key processes and quality control standards, stabilize product quality, reduce product defect rates, and at the same time ensure the integrity and security of technical materials.