Through the acquisition of Hongrun Chemical, the company has further strengthened its position in the UV‑curing industry.

　　To strengthen control over upstream raw materials, in line with the company’s strategic plan and business development needs, on November 4, 2021, the company’s wholly owned subsidiary, Hunan Jiuri New Materials Co., Ltd., formally signed an agreement with Hunan Hongrun Chemical Technology Co., Ltd. Under the agreement, Hunan Jiuri will acquire a 40.00% equity stake in Hongrun Chemical and inject additional capital. Upon completion of the transaction, Hunan Jiuri will hold a 52.00% equity interest in Hongrun Chemical, making Hongrun Chemical a controlling subsidiary of Hunan Jiuri. Benzoic acid, the flagship product of Hongrun Chemical, serves as a key raw material for the company’s photoinitiator products. This acquisition marks another significant step forward in the company’s strategic positioning within the UV‑curing industry.

　　Hongrun Chemical is located in Yueyang City, Hunan Province. It was certified as a High‑Tech Enterprise in 2019 and designated as a New Materials Enterprise and a “Little Giant” enterprise of Hunan Province in 2020. As an “Outstanding Supplier” for the company in 2020, Hongrun Chemical has maintained a strong, long‑term cooperative relationship with us. Currently, the company operates a 50,000‑ton‑per‑year benzoic acid production facility, which, upon its completion, became the first single‑tower installation in China to exceed 50,000 tons of annual capacity in the benzoic acid industry. The company is now undertaking an upgrade and expansion project to produce 30,000 tons per year of high‑quality benzoic acid; all preliminary procedures—including project approval, filing, safety assessment, and environmental impact assessment—have been finalized, and procurement of major equipment has been completed. The new facility is expected to be commissioned and put into operation in May 2022. Furthermore, under its three‑year development plan, the planned 10,000‑ton‑per‑year benzoyl chloride and 5,000‑ton‑per‑year cyclohexylformic acid units will also serve as critical raw material sources for the company.

　　In line with the company’s industrial development strategy—centered on the photopolymerization sector and prioritizing the semiconductor industry—the company has adopted a growth approach of “industry‑wide consolidation, horizontal expansion, and vertical integration” in its core photopolymerization business. Upon completion of this acquisition, the company will strengthen its control over upstream raw materials, effectively reduce procurement costs, and enhance synergies across its value chain, thereby providing robust support for the production of its key photoinitiator products. Looking ahead, the company will remain committed to a globalized business strategy, continuously broadening its product portfolio and, while consolidating its position as an industry leader in photoinitiators, actively expanding into downstream and upstream segments of the photopolymerization value chain as well as into areas such as electronic chemical materials.