The Zhitong Finance App learned that Guoen Technology (02768) fell more than 15% this morning, and the company's A-share Guoen shares fell to a standstill for the second consecutive trading day. As of press release, it decreased by 14.18% to HK$32.2, with a turnover of HK$349.41 million.

According to the news, on the evening of October 12, Guoen Co., Ltd. announced that it plans to acquire 80% of China Fluorine Energy's shares with 1,504 billion yuan in cash and enter the field of fluorine chemicals. After the transaction is completed, China Fluorine Energy will become a holding subsidiary of Guoen Co., Ltd., and will be included in the scope of the consolidated statement. Guoen Co., Ltd. said that the acquisition aims to further improve the layout of the high-end specialty materials industry, enter the field of high-purity electronics specialty gas, and cultivate new business growth points through technology, customer resources and production process collaboration.

It is worth noting that with July 31, 2026 as the reference date, the total equity value of the target shareholders was about 1,883 billion yuan (RMB, same below), compared with net book assets of 628 million yuan, an increase of about 200%. Furthermore, the announcement clearly indicates that China Fluorine Energy's “business performance is growing rapidly in stages but is not sustainable”. As production capacity is released, the performance will stabilize, and it will not be able to maintain rapid long-term growth.

Disclaimer:Webull uses external vendor Google Translation Service for news translations where we endeavour to ensure these are correct, however, we recommend that you please double-check this information accordingly. Webull is not responsible for translation errors or issues.