On September 3, Luxi Chemical’s “Luxi Chemical Group Co., Ltd. Acquisition Report” (hereinafter referred to as the “Acquisition Report”), Sinochem acquired Sinochem Group and Sinochem Group through the free transfer of state-owned equity. 100% equity of China National Chemical Corporation, thereby indirectly acquiring 931 million shares of Luxi Chemical held by Luxi Group and Sinochem Investment, a subsidiary holding company of Sinochem Group, accounting for approximately 48.93% of the company’s total share capital.
Among them, Sinochem holds 492 million shares of Luxi Chemical Industry through its subsidiary holding company Luxi Group, accounting for 492 million shares of Luxi Chemical Industry. 25.85% of the total share capital of Luxi Chemical Industry, and 439 million shares of Luxi Chemical Industry held through its subsidiary holding company Sinochem Investment, accounting for 23.08% of the total share capital of Luxi Chemical Industry. Previously, Sinochem Investment was the largest shareholder of Luxi Chemical. After the reorganization was completed, Sinochem Investment held nearly half of the shares.
▲Before this acquisition, the property rights control relationship of Luxi Chemical
▲After the completion of this acquisition, Luxi Chemical’s property rights control relationship
Luxi Chemical’s performance is improving, and Sinochem It said that it will not adjust the main business of Luxi Chemical at present.
The 2021 semi-annual report shows that Luxi Chemical achieved operating income of 14.471 billion yuan in the first half of the year, a year-on-year increase of 94.73%; net profit attributable to the parent company was 2.632 billion yuan, a year-on-year increase of 1064.17%; 2 Quarterly operating income was 8.255 billion yuan, a month-on-month increase of 32.8%; net profit attributable to parent companies was 1.633 billion yuan, a month-on-month increase of 63.42%.
Since 2021, the prices of the company’s main products, such as butyl octanol, polycarbonate, caprolactam, nylon 6, and DMC, have increased to varying degrees. The company has built an integrated new materials industrial park and formed a relatively complete industrial chain of coal chemical industry, salt chemical industry, fluorosilicone chemical industry and new chemical materials. The company is also expanding and developing high-end new materials, with a total investment of 14 billion yuan.
Luxi Chemical’s fluorine chemical business, basic chemical business, new chemical materials business and fertilizer business are in similar situations to relevant enterprises affiliated to China National Chemical Corporation. With the completion of Sinochem’s reorganization, on the one hand, Luxi Chemical will also receive more resource support; on the other hand, Sinochem’s subsidiaries include Sinochem Blue Sky, Sinochem Plastics, Yangnong Group and Luxi Chemical. Some products overlap or are similar, and there is horizontal competition.
In order to standardize and eliminate horizontal competition, Sinochem China is studying the integration plan of relevant enterprises. However, since the relevant enterprises are widely distributed geographically and involve multiple listed entities, there are many influencing factors that need to be considered in formulating relevant integration plans, the workload of communicating with relevant parties is large, and the relevant regulatory rules and procedures involved are relatively complex. Therefore, as of As of the signing date of this report, Sinochem China has no clear follow-up specific business integration plan. </p
