Shanxi Huhua Group Co., Ltd. and Changzhi Sheng’an Chemical Technology Co., Ltd. agreed to acquire 51% stake in Shanxi Quansheng Chemical Co., Ltd. from Datong Dongchang Industrial Co., Ltd. for approximately CNY 100 million.
February 31, 2021
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Shanxi Huhua Group Co., Ltd. (SZSE:003002) and Changzhi Sheng’an Chemical Technology Co., Ltd. agreed to acquire 51% stake in Shanxi Quansheng Chemical Co., Ltd. from Datong Dongchang Industrial Co., Ltd. for approximately CNY 100 million on February 1, 2021. Post the transaction, Shanxi Huhua Group and Changzhi Sheng’an Chemical Technology will hold 26% and 25% stakes in Shanxi Quansheng Chemical Co., Ltd. for CNY 52 million and CNY 50 million, respectively. The acquisition will be funded through own funds. Shanxi Quansheng Chemical has total assets of CNY 64.01 million and net assets of CNY 52.7 million as of December 31, 2020. Shanxi Quansheng Chemical generated total revenue of CNY 129. 7 million and net profit of CNY 23.9 million for the year ended December 31, 2020. The Board of Directors of Shanxi Huhua Group approved the transaction. Quansheng Chemical completed the registration modification, and obtained the business license issued by the Administrative Approval Bureau of Youyu County.
Shanxi Huhua Group Co Ltd is a China-based company mainly engaged in the research and development, production and sales of various types of civil explosives. The Company also provides customers with specific engineering blasting solutions and blasting services. The Company's main products are industrial explosives, industrial detonators, industrial cables and other initiating equipment. Its products are used in mining, metallurgy, transportation, water conservancy, power, construction and petroleum fields. The Company is also engaged in digital electronic detonator chip design research and development and consumer electronics product design services. The Company conducts its businesses within the domestic market and to overseas markets.
Shanxi Huhua Group Co., Ltd. and Changzhi Sheng’an Chemical Technology Co., Ltd. agreed to acquire 51% stake in Shanxi Quansheng Chemical Co., Ltd. from Datong Dongchang Industrial Co., Ltd. for approximately CNY 100 million.