(Yicai) Dec. 17 -- GCH Technology, a Chinese producer of additives for synthetic resins and modified plastics, announced it will buy French chemicals firm Palmarole Trading for USD9 million.

GCH's board has approved the acquisition of Palmarole, as well as the injection of additional USD15 million into the target company once the deal is completed to support its business development, the Guangzhou-based buyer announced on Dec. 15.

This move will help GCH integrate Palmarole's sales network and service system, establishing direct connections with large chemical clients in Europe and the Middle East, such as Borealis and Borouge, the firm noted.

Moreover, it will accelerate GCH's compliance certification process in international markets and create synergies in market expansion and new product development, thereby enhancing the company’s market share and influence in Europe and the Middle East and promoting steady overseas revenue growth.

In the same statement, GCH also said that the board of directors approved the acquisition of a 48 percent stake in Cetc Yizhihang Chongqing Technology, a developer of drone management platforms, for CNY6.2 million (USD877,510).

GCH can leverage its core technologies and research and development advantages in the field of polymer materials to accelerate its expansion into high-end emerging markets, such as the low-altitude economy and military equipment, which will provide strong support for the company's business development, the firm noted.

With Yizhihang's customer resources and data accumulation, GCH will expedite R&D of materials for the low-altitude economy, Duan Shuli, investment director of GCH, told Yicai.

Yizhihang has launched a comprehensive drone management platform, an intelligent inspection platform, and an unmanned logistics scheduling platform that have already been applied in tourism attractions, streets, industrial parks, and campuses, Pan Xiaoli, the company's deputy general manager of Yizhihang, told Yicai.

"The low-altitude economy is a complex system and is in a preparatory phase," Pan noted. "Large-scale applications will only explode in three to five years."

In the first three quarters of this year, GCH achieved a revenue of CNY740 million (USD100 million) and a net profit of CNY228 million, up 14 percent and 15 percent, respectively, from a year earlier.

GCH's shares [SHA: 688625] closed 1.4 percent up at CNY38.36 (USD5.44) in Shanghai today. They dropped 3.7 percent yesterday.

Editor: Futura Costaglione