Defu Technology Plans to Acquire 51.16% Equity Stake in Huiru Technology Through Acquisition and Capital Increase

Shanghai Securities News China Securities Network News: Defu Technology announced on March 20th that on the same day, the company and all shareholders of Anhui Huiru Technology Co., Ltd. (hereinafter referred to as “Huiru Technology” or the “Target Company”) jointly signed the “Equity Transfer Agreement”; on the same day, Defu Technology, Huiru Technology, and Shenzhen Huiru Electronic Technology Co., Ltd. (hereinafter referred to as “Shenzhen Huiru”) and others signed the “Capital Increase Agreement,” with the following agreements: Defu Technology plans to acquire 35.15% of the existing shares of the Target Company from some of its current shareholders in cash, with a total transfer price of 101.9825 million yuan; Defu Technology and Shenzhen Huiru plan to each increase their capital in the Target Company by 84.0555 million yuan and 10 million yuan respectively in cash.

After the transaction is completed, Defu Technology will hold a total of 51.16% of the Target Company’s shares, and Huiru Technology will become a controlling subsidiary of Defu Technology.

Huiru Technology mainly engages in the research, production, and sales of various high-performance electrolytic copper foils. Its main products include lithium battery copper foil and electronic circuit copper foil. As of the announcement date, Huiru Technology’s electrolytic copper foil production capacity is 20,000 tons per year, with mature electrolytic copper foil manufacturing capabilities.

This transaction is an industry peer merger and acquisition, aligning with the company’s strategic development plan. Due to the rapid growth in market demand, the company’s current capacity utilization is nearing saturation. Through this transaction, the company can integrate existing advanced production lines and equipment within the industry, quickly expanding capacity in the short term to meet the growing downstream demand. Additionally, leveraging the scale advantages, supply chain capabilities, advanced technology level, and product advantages of the listed company, the company aims to further enhance its business scale and profitability. (Huangpu River)