JIANGNAN CHEMICAL(SZ:002226) Zheng Quan Shi Bao Wang·2025-06-11 01:47Core Viewpoint - Jiangnan Chemical has signed an acquisition agreement to purchase 51% of Sichuan Ebian Guochang Chemical Co., Ltd. for 170.34 million yuan, aiming to expand its market share in the southwestern region of China and enhance its profitability through the integration of quality civil explosive assets [1][2]. Group 1 - The acquisition involves cash payment of 170.34 million yuan for 51% equity in Ebian Guochang, which specializes in gel emulsified explosives and modified ammonium oil explosives, primarily serving the Sichuan, Yunnan, and Guizhou provinces [1]. - Ebian Guochang has an approved production capacity of 35,000 tons per year for industrial explosives, but operations are currently suspended due to relocation and construction, with production expected to resume by December 2024 [1][2]. - The company plans to complete the transfer of civil explosive assets, personnel, and related licenses to Ebian Guochang by early 2025, with expectations of turning a profit as the market recovers [2]. Group 2 - Jiangnan Chemical has signed a performance commitment compensation agreement with Changlong Chemical, ensuring that Ebian Guochang achieves a cumulative net profit of no less than 63.07 million yuan over the years 2025 to 2027 [3]. - Following the acquisition, Jiangnan Chemical will consolidate Ebian Guochang into its financial statements, which is anticipated to enhance the company's operational performance and profitability [3]. - The acquisition aligns with national policies for restructuring the civil explosive industry and aims to leverage market opportunities in Sichuan, Guizhou, and Yunnan, supporting the company's strategic development in the southwestern region [4].