According to the Zhitong Finance App, Huabao International (00336) announced that on September 25, 2026, Nocton, World Concept, Boyuan and Boyuan Hong Kong signed a share transfer agreement. Based on strategic planning and business development needs, Nocton and World Concept (a wholly-owned subsidiary of the company, as the buyer) agreed to acquire their total holdings of the target company PT from Boyuan and Boyuan Hong Kong (as the seller) at a total cost of RMB 90 million in cash. 100% of Broad Far Indonesia's shares. After the transaction is completed, Nocton and World Concept will hold 99% and 1% of the target company's shares, respectively. The target company will be a wholly owned subsidiary of the company. Nocton and World Concept will pay the consideration in cash.
The target company was incorporated in Indonesia on October 27, 2021. It is mainly engaged in the production and sale of heated non-combustible (HNB) cigarette bomb products in Indonesia, and mainly provides customers with OEM/ODM services for HNB cigarette products.
Currently, the Group's tobacco-related business mainly focuses on upstream tobacco raw materials, covering categories such as tobacco flakes, essences, and other tobacco ingredients; while the target company focuses on OEM/ODM production and processing of HNB cigarettes, which is in the middle of the industrial chain. The acquisition will effectively fill the Group's capacity shortfalls in the midstream manufacturing process, promote the formation of a vertical integration structure of “upstream raw materials+midstream manufacturing”, and promote collaboration between the Group and target companies in raw material supply, product R&D, manufacturing and market expansion.
The acquisition upgraded the existing commercial partnership between the Group and the target company to a wholly-owned integrated management and control system, enabling the Group to fully integrate the target company's mature production capacity, operating experience and supply chain resources. This not only helps eliminate decision-making friction and coordination costs that may arise due to different stakeholders under the cooperation model, but also ensures complete unification of the Group's strategic direction, and provides a more flexible and efficient internal decision-making basis for subsequent resource allocation, production line collaboration and technology iteration, thereby maximizing the potential for collaboration between the two parties.
The target company has obtained the relevant qualifications required to produce and sell HNB cigarettes at its place of operation, and has established perfect processes, large-scale production lines and a stable supply chain system for raw materials and equipment. Its products have also entered the markets of many countries. The directors believe that the acquisition can integrate the target company's production-side resources and market access advantages on the Group's existing tobacco raw materials business, effectively expand the coverage of the Group's tobacco-related products and services, further strengthen its one-stop service capabilities for customers outside of China, and enhance its international competitive position.