YAXING CHEMICAL(SH:600319) Zheng Quan Ri Bao Zhi Sheng·2025-11-03 11:38Core Viewpoint - The company, Weifang Yaxing Chemical Co., Ltd., is planning to acquire control of Shandong Tianyi Chemical Co., Ltd. through a combination of issuing shares and cash payment, which is expected to constitute a significant asset restructuring [1][2]. Group 1: Acquisition Details - The acquisition involves signing an investment cooperation agreement with Tianyi Chemical's controlling shareholder, Shandong Tianyi Holdings Group Co., Ltd., with the specific transaction plan still under verification and requiring relevant approval procedures [1]. - The company's stock will be suspended from trading starting November 4, with the suspension expected to last no more than 10 trading days [1]. Group 2: Financial Performance and Challenges - Yaxing Chemical reported a net loss of 144 million yuan for the first three quarters of this year, indicating significant challenges in its main business [1]. - The company’s main product, CPE (chlorinated polyethylene), has faced pressure due to intensified industry competition and weak downstream demand, leading to a substantial decline in overall sales prices [2]. Group 3: Strategic Shift and Market Position - In response to market changes, Yaxing Chemical is expanding its sales in areas such as wire and cable, mixing rubber, hoses and tapes, and shoe materials to mitigate the impact of the downturn in traditional business [2]. - The acquisition of Tianyi Chemical is viewed as a critical strategic move to break the development deadlock through external mergers and acquisitions [2]. Group 4: Tianyi Chemical's Strengths - Tianyi Chemical is recognized as a leading enterprise in bromine chemicals, with over 50% market share in domestic products like tetrabromobisphenol A and decabromodiphenyl ether, and up to 70% in some water-based functional monomers in the international market [3]. - The company has a diverse equity structure, attracting investments from well-known institutions such as Shandong High-tech Venture Capital Co., Ltd. and Sinochem-related industry funds [3]. Group 5: Potential Synergies - If the acquisition is successful, it is expected to create significant synergies, with Yaxing Chemical's basic chemical raw materials complementing Tianyi Chemical's fine bromine chemicals, enhancing overall risk resistance [3]. - Tianyi Chemical's research and development capabilities are anticipated to elevate Yaxing Chemical's product technology content, aiding its transition to high value-added sectors [3].