In order to promote the company's overall strategic plan, Satellite Chemical plans to increase its focus on the field of high-end chemical new materials through mergers and acquisitions to further leverage its industrial chain integration advantages.
On the evening of September 12, Satellite Chemical announced that its wholly-owned subsidiary Lianyungang Petrochemical Co., Ltd. (hereinafter referred to as "Lianyungang Petrochemical") planned to acquire 100% equity of Jiangsu Jiahong New Materials Co., Ltd. (hereinafter referred to as "Jiahong New Materials").
The specific transaction plan is that Lianyungang Petrochemical plans to acquire the entire equity of Jiahong New Materials held by Satellite Holdings and Kunyuan Investment in cash, with a transaction amount of 1.524 billion yuan.
The acquisition target, Jiahong New Materials, was established on December 31, 2019, with a registered capital of 1 billion yuan and a paid-in registered capital of 1 billion yuan, of which Satellite Holdings holds 70% and Kunyuan Investment holds 30%. Since its establishment, the registered capital and equity structure of Jiahong New Materials have not changed. Satellite Holdings is the controlling shareholder of Satellite Chemical. Therefore, the transaction will help reduce related transactions between the controlling shareholder and the listed company and avoid potential horizontal competition that may exist in the future.
Judging from business development, Jiahong New Materials mainly produces two products: propylene oxide and hydrogen peroxide. According to the plan, the company will build a new high-performance new material project in Xuwei New District, Lianyungang City, Jiangsu Province. On December 27, 2020, Satellite Holdings and the National East, Central and West Regional Cooperation Demonstration Zone (Lianyungang Xuwei New Area) Management Committee signed a Xuwei New Area Investment Project Cooperation Agreement, committing to construction including an annual output of 900,000 tons of olefin raw material processing and downstream HPPO, acrylonitrile, ABS equipment, acrylamide and other high-performance material industry chain projects and related public auxiliary facilities (i.e., "high-performance new material projects"), with a total investment of 20.2 billion yuan (tax included), are led by Jiahong New Materials Specifically responsible for implementation.
The high-performance new material project is constructed in two phases, one of which is divided into three phases. The first phase of the project is a project with an annual output of 400,000 tons of propylene oxide. The project will start construction in June 2021, and the first phase will enter the trial operation stage in January 2023. The project is continuing to advance, and three sets of 450,000 tons/year HP units, one set of 400,000 tons/year PO unit, 220KV total reduction, elevated flares, supporting storage and public works and other supporting facilities have been built. As of the end of July 2023, the cumulative investment in high-performance new material projects was 4.042 billion yuan (tax included).
For a long time, Satellite Chemical has adhered to the development strategy of "creating the future with science and technology, based on the integration of light hydrocarbons, and building a low-carbon new chemical material technology company". It has the advantage of integrating the industrial chain from lightweight raw materials to new chemical materials and vigorously develops New energy materials, new polymer materials and functional chemicals.
Mergers and acquisitions are an important way for enterprises to achieve strategic planning. For Satellite Chemical, the acquisition of Jiahong New Materials will help promote the implementation of the company's overall strategic plan, improve the company's C3 industrial chain product structure, and at the same time form the company's two major products of propylene oxide and ethylene oxide to complement each other, and extend the downstream epoxy derivatives High-end chemical industry chain.
It is reported that the Jiahong New Material PO device adopts HPPO propylene oxide process technology, which is currently a relatively advanced production process in the world. Compared with the production process and equipment of the same product, the production sewage output is reduced by 70% to 80%, and the unit consumption is reduced by 35%. , with high security and stability. The National Development and Reform Commission's "Guidance Catalog for Industrial Structural Adjustment (2023 Edition)" (Draft for Comments) lists HPPO technology in the encouraged category. According to Announcement No. 59 of 2015 issued by the Ministry of Commerce and the General Administration of Customs, the direct oxidation process (HPPO process) is currently the only product allowed to be exported in China, and propylene oxide from other processes is still managed as a prohibited category.
In addition, from the perspective of M&A growth targets, the target's own performance is gradually being released, and its latest revenue and net profit performance can provide a glimpse of its growth potential.
Financial data shows that in 2022, Jiahong New Materials’ operating income will be approximately 1.95 million yuan, and its net profit will be approximately 80,000 yuan; from January to July 2023, the company’s revenue will be nearly 600 million yuan, with a net profit of approximately 7.32 million yuan.
Satellite Chemical also introduced the financial impact of the transaction in the announcement. This transaction is an industrial merger and acquisition under common control and will not change the accounting method of Jiahong New Materials. After the transaction is completed, Jiahong New Materials will be included in the consolidated statements of listed companies, improving the company's operating performance and profitability.
微信扫一扫打赏
