Huafu Fashion (002042.SZ) subsidiary plans to acquire 49% equity of Tianfu Supply Chain from minority shareholders for RMB50.4 million.

Huafu Fashion (002042.SZ) announced that its wholly-owned subsidiary, Xinjiang Huafu Cotton Industry Group Co., Ltd. ("Huafu Cotton Industry"), plans to acquire, for a consideration of RMB50.4 million, the 49% equity interest held by minority shareholder Xinjiang Yinhua High-Tech Technology Co., Ltd. ("Yinhua High-Tech") in its controlled subsidiary, Xinjiang Tianfu Cotton Supply Chain Co., Ltd. ("Tianfu Supply Chain"). The announcement stated that Xinjiang Tianfu Cotton Supply Chain Co., Ltd. is a controlled subsidiary of the company and is mainly engaged in cotton procurement and sales; general cargo transportation; deep processing of cotton by-products; and sales of cotton, chemical fibers and yarns, textiles, and other products. These related businesses are an important part of the company. In order to strengthen control over the subsidiary, enhance the efficiency of the company's resource integration and the synergy of strategic execution, and strengthen the company's market competitiveness, the company plans to acquire, through Huafu Cotton Industry, the 49% equity interest held by minority shareholder Yinhua High-Tech in the company. This asset purchase is in line with the company's long-term development strategy.