Huabao International (00336) has announced that on September 25, 2026, Nocton, World Concept, Boyuan, and Boyuan Hong Kong entered into a share transfer agreement.

Based on strategic planning and business development needs, Nocton and World Concept, both wholly-owned subsidiaries of the company acting as buyers, have agreed to acquire from Boyuan and Boyuan Hong Kong, acting as sellers, their combined 100% equity interest in the target company PT. Broad Far Indonesia for a total consideration of RMB 90 million in cash.

Following the completion of this transaction, Nocton and World Concept will hold 99% and 1% of the target company's equity respectively. The target company will become a wholly-owned subsidiary of the company. Nocton and World Concept will pay the consideration in cash.

The target company was incorporated in Indonesia on October 27, 2021, and is primarily engaged in the production and sale of heat-not-burn (HNB) cartridge products in Indonesia, mainly providing OEM/ODM services for HNB cartridge products to customers.

Currently, the group's tobacco-related business mainly focuses on the upstream tobacco raw materials segment, covering tobacco sheet, flavors, breakable capsules, and other tobacco raw material categories; while the target company specializes in OEM/ODM production and processing of HNB cartridges, positioning itself in the midstream of the industry chain.

This acquisition will effectively fill the group's capability gap in the midstream manufacturing segment, promote the formation of a vertically integrated structure of "upstream raw materials + midstream manufacturing," and facilitate synergies between the group and the target company in raw material supply, product research and development, production and manufacturing, and market expansion.

This acquisition will upgrade the existing commercial cooperation relationship between the group and the target company into a wholly-owned integrated management and control system, enabling the group to fully integrate the target company's mature production capacity, operational experience, and supply chain resources.

This will not only help eliminate decision-making friction and coordination costs that may arise from different interested parties under the cooperation model, but also ensure complete alignment of the group's strategic direction, providing a more flexible and efficient internal decision-making foundation for subsequent resource allocation, production line coordination, and technological iteration, thereby maximizing the release of synergistic potential between both parties.

The target company has obtained the relevant qualifications required to engage in the production and sale of HNB cartridges in its place of operation, and has established a complete process flow, large-scale production lines, and a stable supply chain system for raw materials and equipment. Its products have also entered multiple national markets.

The directors believe that the acquisition can integrate the target company's production-end resources and market access advantages on the basis of the group's existing tobacco raw materials business, effectively expanding the coverage of the group's tobacco-related products and services, further strengthening its one-stop service capabilities for customers outside China, and enhancing its international competitive position.