Rongsheng Petrochemical plans to acquire 70% equity of Yongsheng Film and Juxing Chemical Fiber for RMB 600 million

On the evening of September 27, Rongsheng Petrochemical announced that it intends to acquire Zhejiang Yongsheng Film Technology Co., Ltd. (referred to as 'Yongsheng Film') and Zhejiang Juxing Chemical Fiber Co., Ltd. (referred to as 'Juxing Chemical Fiber') for 70% each. Equity.

The estimated value of 100% equity of Yongsheng Film is 757 million yuan, and the estimated value of 100% equity of Juxing Chemical Fiber is 112 million yuan. The total transaction amount of each 70% equity of Yongsheng Film and Juxing Chemical Fiber confirmed by the two parties was 608 million yuan. After the completion of the transaction, Yongsheng Film and Juxing Chemical Fiber are the holding subsidiaries of Rongsheng Petrochemical.

As Rongsheng Petrochemical's 70% equity interest in each of Yongsheng Film and Juxing Chemical Fiber is Rongsheng Holdings, Rongsheng Holdings directly holds 64.92% equity interest in Rongsheng Petrochemical, which is the controlling shareholder of Rongsheng Petrochemical. According to relevant rules, this time The transaction constitutes a connected transaction.

Yongsheng Film is located in Binhai Industrial Zone, Keqiao District, Shaoxing City. It specializes in the production and sales of BOPET film and film grade chips. As of July 31, 2018, Yongsheng Film's total assets were 764 million yuan. From January to July, its operating income was 985 million yuan, and its net profit was 93.486 million yuan. Juxing Chemical Fiber is a polyester production and sales enterprise. As of July 31, 2018, Juxing Chemical Fiber's total assets were 274 million yuan. From January to July, the operating income was 923,000 yuan, and the net profit was -777.89 million yuan.

Rongsheng Petrochemical said that Juxing Chemical Fiber has recently started trial operation. This equity acquisition is in line with the company's development strategy, which is conducive to avoiding competition in the same industry and improving the industrial chain. It does not adversely affect the company's independence and has positive effects on the company's future business results. influences.

At the same time, the Rongsheng Petrochemical's acquisition of 70% equity of each of Yongsheng Film and Juxing Chemical Fiber is the company's own funds, which will not have a material adverse impact on the company's financial status and operating conditions.

2016 GoodChinaBrand | ICP: 12011751 | China Exports