Hubei Yihua Completes Strategic Acquisition of Xinjiang Yihua
2024-12-16
On December 11, Hubei Yihua Chemical Co., Ltd. (Hubei Yihua) achieved the latest progress in its major asset restructuring that had been planned for more than three months. High-quality assets of Xinjiang Yihua Chemical Co., Ltd. (Xinjiang Yihua) will be injected, enabling a full industrial chain layout in the chemical industry and enhancing the asset quality and profitability of the listed company.
This major asset acquisition and restructuring is of great significance to Hubei Yihua. On the one hand, upon completion of this transaction, it will effectively resolve the issue of horizontal competition between Hubei Yihua and Yihua Group, which is more conducive to the development of the listed company and the protection of shareholders¡ä interests, especially those of minority shareholders. On the other hand, upon completion of this transaction, based on the production capacity of main products in 2023, Hubei Yihua will add 600,000 tons of urea capacity, 300,000 tons of polyvinyl chloride capacity, and 250,000 tons of caustic soda capacity, marking a substantial increase in production capacity. The resource advantages, scale advantages, and cost advantages will become more pronounced. At the same time, it will further extend the industrial chain of the listed company, achieve upstream and downstream coordination with Xinjiang Tianyun and Xinjiang Chiyuan in the industrial chain, coordinate production and procurement, share customer service resources, and form a more stable profit model.
This major asset acquisition and restructuring is of great significance to Hubei Yihua. On the one hand, upon completion of this transaction, it will effectively resolve the issue of horizontal competition between Hubei Yihua and Yihua Group, which is more conducive to the development of the listed company and the protection of shareholders¡ä interests, especially those of minority shareholders. On the other hand, upon completion of this transaction, based on the production capacity of main products in 2023, Hubei Yihua will add 600,000 tons of urea capacity, 300,000 tons of polyvinyl chloride capacity, and 250,000 tons of caustic soda capacity, marking a substantial increase in production capacity. The resource advantages, scale advantages, and cost advantages will become more pronounced. At the same time, it will further extend the industrial chain of the listed company, achieve upstream and downstream coordination with Xinjiang Tianyun and Xinjiang Chiyuan in the industrial chain, coordinate production and procurement, share customer service resources, and form a more stable profit model.