Meeting market demand, Jiujiang Defu Technology (301511.SZ) plans to acquire the controlling stake of Huiru Technology to expand production capacity.

Jiujiang Defu Technology (301511.SZ) announced that the company has signed a "Equity Transfer Agreement" with all shareholders of Anhui Huiru Technology Co., Ltd. (referred to as "Huiru Technology"). On the same day, Jiujiang Defu Technology also signed an "Increased Capital Agreement" with Huiru Technology, Shenzhen Huiru Electronic Technology Co., Ltd. (referred to as "Shenzhen Huiru"), and Wang Sungon. The parties agreed that Jiujiang Defu Technology intends to acquire 35.15% of the existing equity of the target company from some existing shareholders of the target company in cash, with a total consideration of 102 million yuan; Jiujiang Defu Technology and Shenzhen Huiru intend to increase their capital by 84.055 million yuan and 10 million yuan respectively in cash. After the completion of the transaction, Jiujiang Defu Technology will hold a total of 51.16% of the target company's equity, and Huiru Technology will become a wholly-owned subsidiary of Jiujiang Defu Technology. The announcement shows that Huiru Technology is mainly engaged in the research and development, production and sales of various high-performance electrolytic copper foil, including lithium battery copper foil and electronic circuit copper foil. As of the date of this announcement, Huiru Technology's electrolytic copper foil production capacity is 20,000 tons/year, with mature electrolytic copper foil production capacity. The announcement stated that the company's current production capacity utilization is close to saturation. Through this transaction, the company can integrate existing advanced production lines and equipment in the industry to rapidly expand production capacity in the short term to meet the growing demand downstream.