Zhitong Finance App News, Xiongsu Technology (300599.SZ) announced that the company plans to acquire no more than 80% of the shares of Shenzhen Xinyuan New Materials Co., Ltd. (hereinafter referred to as “Xinyuan New Materials” or “Target Company” or “Target Company”) in cash. After the acquisition is completed, Xinyuan New Materials will become the company's holding subsidiary. The overall valuation of 100% of the target company's shares is tentatively not more than RMB 800 million. The final valuation, pricing, and specific transaction plan are subject to the audit, evaluation report, and duly signed acquisition agreement.

This time, the company plans to acquire no more than 80% of the target company's shares in cash. If the transaction is officially completed, the company's main business will achieve strategic transformation and upgrading from “plastic pipeline R&D, production and sales” to “high thermal conductivity semiconductor packaging and interconnection materials”, which will help break through the limitations of the existing main business, achieve a dual main business layout, and cultivate new profit growth points, thereby enhancing overall profitability and resilience to risks, in line with the company's long-term development strategy and industrial upgrading direction. It conforms to the fundamental interests of the company and all shareholders.

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