Jia Rui International (00822.HK ) subsidiary acquires a 40% stake in Jiamei New Materials for 14.3 million yuan, gaining full ownership and accelerating the commercialization of magnesium alloys.

Gelonghui, March 17 — Jiarui International (00822.HK) announced that on March 17, 2026, the buyer, Jiarui Metal Co., Ltd. (a wholly owned indirect subsidiary of the company), and the seller, Jiaxian Zhongtuo Huixin Technology Co., Ltd., entered into an agreement to acquire a 40% stake in the target company, Jiamu New Material Technology (Yulin) Co., Ltd., for a total cash consideration of RMB 14.3 million.

The target company is a company registered under Chinese law, an indirect non-wholly owned subsidiary of the company, with the buyer holding a 60% stake and the seller holding 40%. It mainly engages in the production and sale of metal materials in China.

The board believes that acquiring full ownership will give the group complete management autonomy, speeding up decision-making and accelerating the trial production and commercialization of the recently developed magnesium alloy with flame retardant, corrosion-resistant, and high thermal conductivity properties. The acquisition will also enable the target company to better respond to the growing market demand for magnesium alloys, driven by their cost advantages over aluminum alloys and regulatory policies shifting away from plastics. Additionally, the target company can leverage its existing die-casting capacity, along with lower energy costs and competitive raw material costs in northwest China, to provide integrated magnesium alloy and die-casting solutions for customers. In the long term, the company plans to expand its business to cover the entire northwest China region.