Guangdong Guanghua Sci-Tech (002741.SZ) plans to invest RMB225 million in Kainuo Zhongxing to deepen its industrial layout in electronic chemicals and high-end new materials.

Guangdong Guanghua Sci-Tech (002741.SZ) announced that the company plans to use RMB225 million of its own funds to acquire a portion of the equity of Hebei Kainuo Zhongxing Technology Co., Ltd. ("Kainuo Zhongxing" or the "Target Company") through capital increase and equity transfer. Upon completion of the transaction, the company will hold 21.46% of the equity of Kainuo Zhongxing (the "Target Equity"), and Kainuo Zhongxing will become an associate company of the company and will not be included in the scope of the company's consolidated financial statements. This investment is an important measure for the company to advance industrial synergy around core tracks such as semiconductor photoresists and pharmaceutical intermediates: Kainuo Zhongxing is mainly engaged in the R&D and production of electronic information new materials such as photoresist resin monomers for large-scale integrated circuits and chip manufacturing, photoacid generators, additives, and various supporting reagents, and also produces heterocyclic pharmaceutical intermediates such as tetrazole derivatives, triazole derivatives, piperazine, piperidine, and quinoline, which have strong complementarity and a synergistic foundation with the company's existing electronic chemicals business in terms of product structure, technical processes, and target customers. The company can leverage its advantages in fine chemicals R&D, production management, quality control, supply chain, and customer channels to provide Kainuo Zhongxing with support in industrialization scale-up, process optimization, and market expansion, promoting the accelerated conversion of its technological achievements into large-scale production capacity; Kainuo Zhongxing's technical accumulation in the field of key photoresist materials will also help the company extend into high-value-added segments of the semiconductor materials industry chain, jointly enhancing the domestic supporting capacity for key electronic chemicals.