Wanshun New Materials Completes Acquisition Of 100% Stake in Eurofoil Luxembourg, Net Assets Appreciating Over 53%

Wanshun New Materials Completes Acquisition of 100% Stake in Eurofoil Luxembourg, Net Assets Appreciating Over 53%

On March 16, Wanshun New Materials announced that its wholly-owned subsidiary, Jiangsu Zhongji Composite Materials (Hong Kong) Co., Ltd., intends to acquire 100% equity of Luxembourg aluminum foil producer Eurofoil Luxembourg S.A. for €12.3889 million in cash. Currently, the target company's related audit and evaluation work has been completed, the acquisition proposal has been approved by Wanshun New Materials' board of directors, and it still needs to be submitted for shareholder approval. Additionally, it has received filing approval from the Luxembourg Ministry of the Economy.

As of the evaluation benchmark date of September 30, 2025, the market value of Eurofoil Luxembourg's net assets was assessed at €32.1703 million, representing an increase of €11.1501 million over its book value, with an appreciation rate of 53.04%. The transaction price represents a discount of about 60% compared to the assessment value, with a price difference exceeding €19.78 million. Wanshun New Materials stated that the transaction price was determined through equal negotiation by both parties based on the target company's operational status and assets.

Founded in 1982, Eurofoil Luxembourg primarily engages in the production and sale of aluminum foil and aluminum sheets and strips. It operates four casting production lines, five rolling production lines, five finishing production lines, and five packaging lines, with a designed casting capacity of about 56,000 tons per year and a rolling capacity of about 33,000 tons per year. The company has a strong reputation in the European market. Currently, the company focuses on high value-added products in the aluminum foil sector, continuously developing niche thin foil products and new alloys, and exploring new markets such as pharmaceuticals and sealing materials. However, the company is operating at a loss, with a net loss of approximately €5.58 million in 2024, which expanded to around €12.96 million in the first nine months of 2025.

As a leading enterprise in the aluminum processing industry, Wanshun New Materials regards aluminum foil and aluminum sheets and strips as core industries for long-term strategic development and has established an integrated industrial chain layout, with a planned total aluminum foil capacity of 255,000 tons and a total aluminum sheets and strips capacity of 260,000 tons. In 2024, foreign revenue accounted for nearly 18% of the company's total revenue, increasing to 19.44% in the first half of 2025. However, the company itself also faces losses, with an expected net loss attributable to shareholders between ¥160 million and ¥190 million for 2025, mainly due to domestic and international aluminum price inversion, low industry processing fees, and the cancellation of export tax rebates.

Wanshun New Materials stated that this acquisition is an important step in the company's global expansion, enabling it to mitigate the impact of international trade protection policies while enhancing brand influence and market share. At the same time, the acquisition will leverage the resource advantages of both parties to create synergy, improve core competitiveness, and enhance profitability through technological integration.