A whopping 6.85 billion yuan investment! Huafeng Chemical enters the high-end TPU new material track

This transaction aims to integrate high-condition polyurethane assets within the group, incorporate all leather polyurethane resin and TPU businesses into the listed company system, and enhance the full manufacturing chain layout of polyurethane.

Clear transaction structure: share-based payment as the main method, supplemented by cash payment

The consideration to this acquisition is clearly split, and the valuations of the two target companies are clear: 100% equity of Huafun Synthetic Resin is valued at 4.15 billion yuan, and 100% equity of Huafun Thermoplastic Polyurethane is valued at 2.7 billion yuan.

Under the overall transaction payment plan, 5.829 billion yuan will be paid via shares, and 1.021 billion yuan will be paid in cash. the share issuance price is set at 8.45 yuan per share, and it is estimated that about 690 million new shares will be issued. Upon completion of the transaction, the two target companies will have become wholly-owned subsidiaries of Huafun Chemistry.

Fill the gaps in the manufacturing chain and open up the core tracks of PU resin + TPU

This restructuring is not just a simple expansion of scale, however an manufacturing chain integration that accurately focuses on the main business.

Huafun Chemistry's original core business focuses on spandex, polyurethane raw fluid and adipic acid, while the controlling shareholder Huafun Group's polyurethane manufacturing layout covers multiple categories such as polyester polyol, PU resin, microfiber material and TPU. Previously, the resin and TPU segments were not included in the listed entity, resulting in a split of the same sector manufacturing chain.

After this asset injection, the listed company will officially enter the high-value tracks of leather polyurethane resin and thermoplastic polyurethane (TPU). TPU materials have the advantages of rubber elasticity and plastic processing, and are broadly applied in high-end scenarios such as shoe materials, functional films, cables, auto parts and consumer electronics, with a broad market space.

Relying on this integration, the company will realize the full chain integration of raw materials, resin, TPU and spandex, form deep synergy in procurement, R&D, production and channel sides, and greatly enhance the overall manufacturing competitiveness.

Seven-year commitment fulfilled, continue the group's asset integration plan

This restructuring is not an impulsive move, however the fulfillment of Huafun Group's prolonged asset securitization commitment.

As early as 2019, when Huafun Anlan acquired Huafun New Materials, the group publicly promised that when the operating conditions of Huafun Synthetic Resin and Huafun Thermoplastic are mature, the two high-condition assets will be injected into the listed company. The landing of this 6.85 billion restructuring is a continuation of the group's established manufacturing integration plan, which will completely straighten out the internal polyurethane business structure, prevent peer competition, and realize the overall listing of the core main business.

Three-year performance commitment of 1.834 billion yuan, high appreciation rate draws market attention

This transaction comes with clear performance gambling to guarantee the asset condition.

- Huafun Synthetic Resin: The accumulated promised net profit from 2026 to 2028 shall not be less than 1.011 billion yuan

- Huafun Thermoplastic Polyurethane: The accumulated promised net profit from 2026 to 2028 shall not be less than 823 million yuan

The two target companies have a total promised net profit of 1.834 billion yuan in three years.

At the same time, the appraisal appreciation rates of the two assets are relatively high: the appraisal appreciation rate of Huafun Synthetic Resin is 356.24%, and that of Huafun Thermoplastic is 432.08%. The high appreciation rate has also made the market focus on the performance realization ability and operational stability of the target companies in the future.

Stable equity structure, the restructuring still needs multiple approvals

After the completion of this transaction, the total shareholding ratio of Huafun Group and its concerted actors will increase to 70.19%. The controlling shareholder and actual controller of the listed company will remain unchanged, and the equity structure is highly stable.

At present, this major asset restructuring has not yet been implemented, and it still needs to go through multiple legal procedures such as the company's general meeting of shareholders review, Shenzhen Stock Exchange review and CSRC registration, and the follow-up progress is worthy of continuous tracking.

sector interpretation: Focus on the polyurethane main business and build a full manufacturing chain barrier

This restructuring clearly highlights the research strategy of Huafun Chemistry: do not cross-border to pursue new trends, and focus on the polyurethane core track. Through the integration of internal high-condition assets, make up to the key links of resin and high-end TPU, realize the full manufacturing chain closed loop from basic raw materials to high-end new materials, further consolidate the company's leading position in the domestic polyurethane sector, and lay a solid foundation to the subsequent expansion of high-end material business and the improvement of profitability.