Xingfa Group formally acquired 70% equity of Indonesia Amco

XingfaHong Kong Import and Export Co., Ltd, a wholly-owned subsidiary of Hubei XingfaChemicals Group Co., Ltd acquired 70% equity of Indonesia Amco and finished allthe transfer procedure on 23 Oct., 2023. Indonesia Amco is the first overseasmanufacturing enterprise acquired by Xingfa Group, and the equity acquisitionmarks a new stage of Xingfa Group's internationalization strategy.

SinceNov 2022, Xingfa Group has officially sent representatives to Indonesia Amco toinvestigate and gain a comprehensive understanding of Amco’s production andoperation. In Feb 2023, Li Guozhang, party secretary and chairman of XingfaGroup, led a team to visit Amco in Indonesia and signed an acquisition intentagreement and confidentiality agreement.

On 22 August, 2023, Xingfa Hong Kong Import and Export Co., Ltd formally signed anequity purchase agreement with the original shareholders of Amco, and completedthe equity transfer on 23 Oct. After this acquisition, Amco will rely on XingfaGroup’s capital, technology and management advantages to extend the Indonesianparaquat and glyphosate AS business, so as to expand the company's influence inIndonesian pesticide market, gradually radiate to Southeast Asia and surroundingmarkets, and make greater contributions to the internationalization strategy ofXingfa Group.

Thedesign capacity of Amco’s 45% paraquat is 5,694t/a, and the output reached4,126 tonnes in 2022. TAt the same time, the company has built a fillingproduction line for paraquat, glyphosate AS and other herbicides, insecticides,fungicides, plant growth regulators and acaricides. With a total of 36trademark registration certificates and 42 pesticide product licenses, thecompany has 10% share of paraquat series products in Indonesian market, and thefour paraquat brands are well-known brands in Indonesian market.