Gelonghui, November 18, 丨 China Tianhua Chemical (00362.HK) announced that on November 18, 2024, the company signed a strategic investment framework agreement with three companies incubated by Suzhou Chuyihe Enterprise Management Co., Ltd. (Suzhou Chuyi): Hubei Yidong Yihe Management Co., Ltd., Hubei Daohe Industrial Development Co., Ltd., and Fafuduo Catering Management (Beijing) Co., Ltd.
According to the framework agreement, Yidong, Daohe Industrial and Fafudo agreed to cooperate with the company and commit to make strategic investments in the company to support the company's business development in accordance with Hong Kong capital market regulations and certain conditions. According to the different stages of cooperation, it is expected that Yidong, Daohe Industrial and Fafudo will make a strategic investment of no less than 20 million US dollars in the company according to current market conditions and capital usage, including but not limited to debt and equity investments such as subscription and issuance of notes, bonds, convertible bonds and/or share placements.
The Board of Directors believes that in order to expand the mainland China market and enter the health and consumer industries, all parties can use their respective strengths, resources and expertise to establish stable and mutually beneficial strategic partnerships. The establishment of a framework agreement is in line with the company's overall development strategy, allows the company to seize any potential business and investment opportunities, and conforms to the overall interests of the company and its shareholders.
