Oriental Yuhong acquires 60% equity interest in Xingfa Lexus

On November 7, Oriental Yuhong announced that the company intends to acquire 60% of the equity
of Hubei Xingfa Lexus New Materials Co.
, Ltd.
(hereinafter referred to as Xingfa Lexus) with its own funds of 28.
8 million yuan.

It is disclosed that Xingfa Lexus is mainly engaged in the research and development, production and sales of silicone sealants and other products, and the product line includes architectural adhesives represented by building curtain wall products, insulating glass products, etc.
, as well as photovoltaic module product series, road and bridge application product series
, etc.
At present, the company has a sealant production capacity of 30,000 tons/year, and a planned production capacity of 30,000 tons/year
under construction.
As of September 30 this year, Xingfa Lexus had total assets of 154 million yuan, total liabilities of 120 million yuan and net assets of 33.
4 million yuan
.
In the first three quarters of 2021 and 2022, the company achieved revenue of 234 million yuan and 165 million yuan, respectively; The net profit was 290,000 yuan and 1.
23 million yuan
respectively.

Dongfang Yuhong said that this transaction is a horizontal expansion of the company to the subdivided product field represented by silicone sealants, which is conducive to broadening the company's product matrix and cultivating new business growth points
.
At the same time, the company will promote the research and development, production, sales and system service capacity building
of industrial adhesives represented by photovoltaic adhesives.