Huarun Double-Crane to Acquire 23.5% Stake in Lier Chemical for RMB 5.656 Billion, Becoming Actual Controller

On the evening of July 29, 2026, Huarun Double-Crane and Lier Chemical simultaneously announced that Huarun Double-Crane plans to acquire a combined 23.5% stake in Lier Chemical from Sichuan Jiuyuan Investment Holding Group Co. , Ltd. and Sichuan Huacai Technology Co. in cash. The transfer price is RMB 30.07 per share, with a total consideration of RMB 5.656 billion. Upon completion, the controlling shareholder of Lier Chemical will change from Jiuyuan Group to Huarun Double-Crane, and the actual controller will become China Huarun Co.

The equity transfer stems from Jiuyuan Group and its concert party Huacai Technology's efforts to focus on core businesses and deepen state-owned enterprise reforms. On November 14, 2025, Lier Chemical received notice from Jiuyuan Group of its intention to transfer part of its stake through a public solicitation. On May 20, 2026, the Ministry of Finance approved the public solicitation in principle. During the solicitation period, ten interested parties submitted applications and paid deposits. After comprehensive evaluation, Huarun Double-Crane was ranked first among the bidders, followed by Shudao Investment Group Co. and Sichuan Energy Development Group Co.

Lier Chemical, founded in 1993 and headquartered in Mianyang, Sichuan, is engaged in the R&D, production, and sale of pesticide technical materials and formulations. It operates seven manufacturing bases and is China's largest producer of chloropyridine pesticide technical materials and formulations, as well as a major producer of glufosinate-ammonium and L-glufosinate-ammonium. In 2025, Lier Chemical achieved revenue of RMB 9.008 billion and net profit attributable to the parent of RMB 479 million. In the first quarter of 2026, revenue increased 10.85% year-on-year, while net profit fell 24.82% to RMB 115 million.

Huarun Double-Crane is the chemical drug business platform of the Huarun Group in the health sector, covering new drug R&D, formulation production, pharmaceutical sales, and API manufacturing. In 2025, Huarun Double-Crane reported revenue of RMB 11.001 billion and net profit attributable to the parent of RMB 1.647 billion. In the first quarter of 2026, revenue and net profit fell 8.84% and 4.30% year-on-year, respectively. As of the end of the first quarter of 2026, Huarun Double-Crane had cash of RMB 2.57 billion and net operating cash flow of RMB 171 million. Huarun Double-Crane began laying out synthetic biology in 2022 and established a synthetic biology research institute in 2023, building seven technology platforms but lacking an industrialization platform. This acquisition aims to leverage Lier Chemical's mature production qualifications, manufacturing bases, and global sales network to rapidly industrialize synthetic biology technology products.

According to the announcement, Huarun Double-Crane commits not to transfer the acquired shares for 60 months from the completion of the share transfer, not to pledge them for 36 months, and has no plan to inject assets into Lier Chemical for 36 months. The transaction still requires multiple approvals, including a second board meeting and shareholder meeting of Huarun Double-Crane, approval from the counterparty's internal decision-making body, approval from the competent state-owned assets supervision and administration authority, clearance from the State Administration for Market Regulation on concentration of operators, and a confirmation opinion from the Shenzhen Stock Exchange on related matters.