Mei Ri Jing Ji Xin Wen·2025-11-13 16:55Core Viewpoint - Cathay Group has expanded its civil explosives business by acquiring 100% equity of Beijing Mining and Metallurgy Blasting Technology Engineering Co., Ltd. (referred to as "Beijing Mining Blasting") for 110.1 million yuan, aligning with national policies and enhancing its competitive edge in the industry [2][4]. Summary by Sections Acquisition Details - The acquisition was confirmed on November 13, with Cathay Group participating in a public auction for the 100% equity of Beijing Mining Blasting [4]. - The transaction price was set at 110.1 million yuan, and the seller is Beijing North Mining Yibo Technology Co., Ltd. [4]. - The acquisition aims to strengthen Cathay Group's integrated civil explosives business and meet the production capacity requirements outlined in the "14th Five-Year Plan" [2][4]. Business Synergy and Capabilities - Beijing Mining Blasting has a strong operational base in Jiangxi province, holding first-class blasting qualifications and technical reserves, which will enhance business synergy with Cathay Group [2][6]. - The company serves Jiangxi Copper's mining operations and has an annual production capacity of 8,000 tons of mixed explosives, which aligns well with Cathay Group's core business [2][6]. Financial Performance - Beijing Mining Blasting reported stable financial performance, with revenues of 35.88 million yuan in 2023, 26.74 million yuan in 2024, and 11.97 million yuan for the first seven months of 2025 [6][8]. - Net profits for the same periods were 5.80 million yuan, 4.46 million yuan, and 1.66 million yuan, respectively [6][8]. - As of July 2025, the company had total assets of 58.17 million yuan and a debt-to-asset ratio of 13.66% [6][7]. Valuation and Market Context - The total equity of Beijing Mining Blasting was appraised at 85.69 million yuan as of December 31, 2024, reflecting a 77.78% increase in value [10]. - The acquisition aligns with recent government initiatives encouraging consolidation in the civil explosives industry to create a more self-sufficient supply chain [10].