China's Bolton (03318) subsidiary injects 160 million yuan into Shandong Ganghong Biotechnology to acquire 49% of the shares

According to Zhitong Finance App, China Bolton (03318) announced that on November 13, 2026, Shenzhen Bolton, an indirect wholly-owned subsidiary of the Company, entered into a capital injection agreement with the target company Shandong Ganghong Biotechnology Co., Ltd. and the target shareholders (i.e. Wei Jie and Song Chuanlan). Based on this, Shenzhen Bolton conditionally agreed to inject capital into the target company and acquire 49% of the target company's shares at a cost of RMB 160 million (equivalent to about HK$186 million).

Upon completion, Shenzhen Bolton will hold 49% of the target company's expanded registered capital. Therefore, the target company will be recorded as an associated company of the Company, and its financial results will not be incorporated into the Group's comprehensive financial statements.

The Company is an investment holding company, and the Group's main business is mainly engaged in the production and sale of extracts, essences and fragrances. It is also engaged in the design and manufacture of high-quality e-cigarettes and related products.

Shenzhen Bolton is an indirect wholly-owned subsidiary of the company. It has the qualification of a national high-tech enterprise. It integrates independent R&D, production and sales to produce products such as tobacco flavors, natural flavors, synthetic fragrances, biotechnological fragrances, etc. Among them, tobacco flavors are its core products. Shenzhen Bolton has a professional plant research center and a new material research center, equipped with the world's top analytical testing equipment and “traditional” plus “modern” extraction and separation equipment. The company has established a complete raw material analysis database and has the first CNAS accredited first-party laboratory in the Chinese fragrance and fragrance industry. In addition, Shenzhen Bolton has a municipal engineering technology research center, an engineering laboratory, a technology center, and a provincial engineering technology research center.

The Group has been actively seeking potential business opportunities to enhance the Group's competitiveness. Following the acquisition of 49% interest in the target company, the Group is strategically strengthening its core fragrance and fragrance business by ensuring a stable upstream supply of key chemical intermediates and leveraging the advanced R&D capabilities of the target group. By integrating the advantages of the target group's modern laboratories, analysis centers approved by CNAS, and technical expertise in the field of microchannel reactions, the Group can greatly optimize the existing fragrance production process, improve pilot amplification efficiency, and accelerate the development progress of innovative fragrance and fragrance products. Furthermore, in collaboration with the target group's regional infrastructure, the Group was able to develop promising pharmaceutical and agrochemical customer groups in North China and East China, thereby expanding the market coverage of its product portfolio.