Daun shares intends to acquire 80% equity of Haier Xincai

On the evening of September 6, Daon announced that it had signed an Equity Acquisition Agreement with the counterparty, and the company intends to purchase 80% of Haier New Materials held by Yantai Xu Lishengen in cash. Upon completion, Haier Xincai became a holding subsidiary of the company. The initial transaction price of Haier Xincai's 80% equity was 263 million yuan. All of them were paid in cash, and did not involve the issue of shares to purchase assets.

In terms of performance commitments, Haier New Materials' 2018, 2019 and 2020 net profit attributable to shareholders of the parent company after deducting non-recurring gains and losses accumulated to RMB 185 million. According to Haier New Materials' unaudited 2017 financial data preliminary estimates This transaction constitutes a major asset restructuring.

The main business of Daon is the development and production of thermoplastic elastomer products, modified plastic products and masterbatch products. The products are mainly dynamic vulcanized thermoplastic elastomers (TPV). Modified plastic products are mainly toughened modified plastics. , High gloss modified plastics and flame retardant modified plastics, etc. Haier New Materials is mainly engaged in the production and sales of modified plastics such as PP and ABS. The modified plastic pellets produced by them are widely used in the fields of home appliances, automobiles and other production and processing. The downstream customers mainly include Haier Group, Matsushita Electric, Yanfeng Motor, Mitsubishi, etc. Haier New Materials customers and Dow shares customers have certain overlap and interaction, and all belong to the same industry, with high synergy.

The company said that after the completion of the transaction, Haier New Materials' product advantages and sales channels will be used to further strengthen the cooperation with downstream customers and expand the product market.

Guotai Junan pointed out that Haier New Materials is mainly based on the production and processing of modified plastics for home appliances. This move enables the company to further enhance its technology and channel advantages in the field of modified plastics and become a leading provider of modified plastic solutions.

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