Major Restructuring: Pharmaceutical Company Ventures into Semiconductor Materials!

On September 21, Zhejiang Sunflower Health Technology Co., Ltd. announced that the company intends to acquire 100% equity of Zhangzhou Xipu Materials Technology Co., Ltd. (Xipu Materials) and 40% equity of Zhejiang Beid Pharmaceutical Co., Ltd. (Beid Pharmaceutical) through the issuance of shares and cash payment, and to raise matching funds.

The merger and acquisition strategy of Sunflower presents a "dual-line approach": on one hand, it cuts into the new materials sector by acquiring a controlling stake in Xipu Materials, and on the other hand, it further strengthens its pharmaceutical industry layout by acquiring a 40% stake in Beid Pharmaceutical.

Xipu Materials was established on November 20, 2020, with a registered capital of 39.30131 million yuan. It is primarily engaged in the research and development, manufacturing, and sales of high-end semiconductor materials. Its core products include semiconductor-grade high-purity electronic specialty gases, silicon-based precursors, and metal-based precursors, which are widely used in critical processes such as diffusion, etching, and thin film deposition in semiconductor manufacturing. In 2023 and 2024, Xipu Materials' revenue was 38.5418 million yuan and 98.544 million yuan, respectively, with net profits of 40.8 thousand yuan and 13.7652 million yuan, respectively.

In addition, it is worth noting that this transaction constitutes a related party transaction—Beide Pharmaceutical is a subsidiary controlled by Sunflower, which was established in 2004. Currently, Sunflower holds 60% of the shares in Beide Pharmaceutical. As early as September 2018, when Sunflower planned to divest its photovoltaic assets and transition into the pharmaceutical industry, it intended to acquire 100% of Beide Pharmaceutical's equity, but this acquisition ultimately did not receive approval from the reviewing committee.

Moreover, Sunflower attempted to branch out into other fields twice, but both attempts failed to materialize.

In April 2023, Sunflower announced that Zhejiang Longxiang intends to purchase high-efficiency solar cell production equipment, with an amount of approximately 827 million yuan.

In March 2024, Sunflower and its partners established a project company primarily engaged in the research and development, production, sales, and services related to metal-based ceramics, which can be applied in fields such as photovoltaic and semiconductor equipment.

Sunflower was established in 2005 and went public on the Shenzhen Growth Enterprise Market in August 2010. Its main business focuses on the pharmaceutical sector, primarily engaging in the research, production, and sales of drugs for anti-infection, cardiovascular, and digestive system treatments.