China丨Flagchem acquired 100% equity of Suke to improve its formulation capacity

Flagchem announced that they have obtained the Transaction Confirmation for the Transfer of 100% Equity (corresponding to RMB 11 million investment) of Suke issued by JSCQ on September 14, 2022. And, on Sept 21, 2022, Flagchem signed the "State-owned Property Rights Transfer Contract" with Jiangsu GuoJin, and acquired 100% equity of Suke at a transaction price of 1.0778 million yuan with its own capital.

The announcement expressed that Suke’s main business is the production and sales of pesticide formulations, and it belongs to the upstream and downstream relationship with the company's existing main business. After the acquisition, Flagchem can make full use of the advantages of Suke’s established brand and relevant qualification in the field of formulations, expand the company’s capacity, further extend the downstream product chain, constantly expand and improve the business structure. Actually, this acquisition is helpful to improve the overall revenue scale of the listed company, enhance the company's sustainable profitability and anti-risk ability, in line with the interests of all shareholders.