Ruifeng Polymer plans to obtain no less than 51 percent equity in Anhui Mituo New Materials Technology through cash acquisition and capital increase, with the total transaction consideration initially estimated at about 400 million to 500 million yuan, thereby entering the electronic-grade epoxy resin segment upstream of the copper-clad laminate supply chain. Mituo New Materials' main products include electronic-grade epoxy resin, low-dielectric resin, and photosensitive materials, with downstream demand mainly from the copper-clad laminate industry, creating synergies with Ruifeng Polymer in customers and raw materials. Financial data shows that Mituo New Materials posted operating revenue of 40.75 million yuan in 2025 and a net loss of 58.66 million yuan; in the first half of 2026, operating revenue was 28.55 million yuan and the net loss was 23.53 million yuan, with net assets of 124 million yuan as of June 30, 2026. Ruifeng Polymer's net profit attributable to the parent company was 30.33 million yuan in 2025 and 58.94 million yuan in the first half of 2026, meaning the target company's losses have already exceeded its full-year net profit and reached 40 percent of its net profit for the same period. On August 18, Ruifeng Polymer's share price hit the daily limit multiple times during trading before the limit was broken, closing up more than 15 percent.
Shandong Ruifeng Chemical Co LtdAcquiring Mituo New Materials for 400-500 million yuan to enter copper-clad laminate supply chain, despite target's losses, creating synergies.
Target company being acquired, with financial losses and net assets, but impact on its own valuation unclear.
