China Salt Chemical(SH:600328) Shang Hai Zheng Quan Bao·2025-08-05 18:07Core Viewpoint - The company plans to increase the registered capital of its subsidiary, Zhongyan (Inner Mongolia) Soda Industry Co., Ltd., to 8 billion yuan to support the development of a natural soda project and optimize its capital structure [2][6][12]. Group 1: Investment and Capital Structure - Zhongyan Soda Industry is a subsidiary of Zhongyan Inner Mongolia Chemical Co., Ltd. The company intends to invest up to 4.88 billion yuan in this subsidiary, while also seeking to introduce strategic investors to raise up to 3.92 billion yuan [2][6][12]. - The registered capital of Zhongyan Soda Industry will be increased to 8 billion yuan to meet the funding needs for the natural soda project [2][6][12]. - The company has signed a framework agreement with Shandong Haohua Co., Ltd. and Inner Mongolia Mengyan Salt Industry Group Co., Ltd. for their respective investments of up to 2.32 billion yuan and 800 million yuan [3][12]. Group 2: Project Development and Financial Implications - Zhongyan Soda Industry successfully acquired a natural soda mining right for 6.80866 billion yuan, which is crucial for the development of the natural soda project [5][8]. - The investment plan includes a phased funding approach, with the first phase requiring 6.80866 billion yuan and the second phase requiring 1.19134 billion yuan [12][13]. - The company aims to maintain control over Zhongyan Soda Industry, ensuring that its ownership remains above 51% after the capital increase [6][12]. Group 3: Strategic Importance and Market Context - The investment in the natural soda project aligns with the company's long-term strategy to enhance its competitiveness in the soda ash market, especially as the industry shifts towards more sustainable production methods [19][26][28]. - The natural soda production method is expected to have a cost advantage over synthetic methods, which is significant given the current downward trend in soda ash prices [19][27][28]. - The company anticipates that the natural soda project will contribute to a production capacity of 5 million tons per year, reinforcing its market position [19][26][28].