Anhui Shenjian New Materials Co.,Ltd signed an agreement to acquire an additional 11% stake in Lihuayi Shenjian Chemical Co., Ltd. from Lihuayi Lijin Refining & Chemical Co. Ltd for CNY 13.8 million.
November 24, 2020
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Anhui Shenjian New Materials Co.,Ltd (SZSE:002361) signed an agreement to acquire an additional 11% stake in Lihuayi Shenjian Chemical Co., Ltd. from Lihuayi Lijin Refining & Chemical Co. Ltd for CNY 13.8 million on November 24, 2020. Post completion, Anhui Shenjian New Materials will hold 51% stake and Lihuayi Lijin Refining & Chemical will hold 49% stake in Lihuayi Shenjian Chemical. Within 5 working days after the agreement is effective, Anhui Shenjian New Materials will make a one-time payment. Lihuayi Shenjian Chemical had revenues of CNY 223.5 million, operating loss of CNY 25.5 million and net loss of CNY 28.4 million for the period ended December 31, 2019. As of October 31, 2020, Lihuayi Shenjian Chemical reported total assets of CNY 172.7 million and net assets of CNY 123.7 million. Transaction has been approved in the 7th extraordinary meeting of Anhui Shenjian New Materials’ 5th Directorate held on November 24, 2020 and does not need the shareholders’ approval. Within 20 working days after the agreement signing date, the parties will complete the change of business registration.
Anhui Shenjian New Materials Co Ltd is a China-based company mainly engaged in the production and sales of chemical products. The Company operates two segments: Chemical Production segment and High-end Equipment Manufacturing segment. The Chemical Production segmentâs products include outdoor resin and mixed resin. The High-end Equipment Manufacturing segmentâs products include: aviation and aerospace related molds, tooling, frames, parts, etc; heads, floors, side box plates, high voltage cabinets, emergency evacuation systems and structural parts of high-speed rail train; composite products, and Beidou satellite navigation system application terminal products. The Company's sales cover the Middle East, Europe and the United States, Southeast Asia and other major regions.
Anhui Shenjian New Materials Co.,Ltd signed an agreement to acquire an additional 11% stake in Lihuayi Shenjian Chemical Co., Ltd. from Lihuayi Lijin Refining & Chemical Co. Ltd for CNY 13.8 million.