Transaction Overview - The company plans to agree to the reduction of capital by PetroChina Zhongyan (Inner Mongolia) Soda Industry Co., Ltd., which will result in it becoming a wholly-owned subsidiary of the company [1][2][3] - PetroChina Zhongyan Soda Industry Co., Ltd. won the bidding for the natural soda mining rights in the Inner Mongolia region for 6.80866 billion yuan [1][3] - After the capital reduction, the company will hold 100% of the shares in Zhongyan Soda Industry, which will be included in the company's consolidated financial statements [1][4] Asset Restructuring - The acquisition of Zhongyan Soda Industry constitutes a significant asset restructuring as per the regulations of the "Management Measures for Major Asset Restructuring of Listed Companies" [2][4] - The transaction does not constitute a related party transaction and will not lead to a change in the control of the listed company [2][4] Financial Implications - The company’s debt-to-asset ratio was 28.65% as of March 2025, indicating a relatively low level of debt in the industry [2][8] - The total investment required for the development of the natural soda project is expected to be substantial, which may impact the company's financial position [2][8] Strategic Importance - The project aligns with national economic development requirements and industry policies, supporting the company's strategy to enhance its core competitiveness in the soda industry [6][7] - The natural soda method has significant cost advantages over synthetic soda production, positioning it as a mainstream option in the industry [7][8] Future Plans - The company will support Zhongyan Soda Industry in the development and processing of natural soda resources, aiming for early construction and production to benefit shareholders [6][7] - A detailed financing plan will be developed to ensure project funding through various means, including strategic investors and bank loans [8]

Core Viewpoint - The company, Zhongyan Chemical, is actively pursuing strategic partnerships and investments to enhance its market position and operational efficiency, particularly in the natural soda ash sector, while also engaging in share repurchase programs to support shareholder value [5][6][7]. Financial Data - The first quarter financial report for 2025 has not been audited, and the company has confirmed the accuracy and completeness of the financial information presented [3][10]. - The company reported a pure soda ash production capacity of 3.9 million tons per year, positioning it as the third-largest producer in China [6]. Shareholder Information - The company plans to establish a joint venture with China National Petroleum Corporation (CNPC) to explore and develop natural soda resources, with a registered capital of 40 million yuan, where CNPC will hold a 51% stake and Zhongyan Chemical will hold 49% [6][7]. - As of the report date, the company has repurchased 6.6136 million shares, representing 0.4494% of the total share capital, with a total expenditure of approximately 50 million yuan [8]. Corporate Governance - The board of directors and supervisory board have confirmed the integrity of the quarterly report, ensuring compliance with relevant laws and regulations [2][26]. - The company is set to hold its second extraordinary general meeting of 2025 on May 14, 2025, to discuss various proposals, including amendments to the company’s articles of association [20][33]. Social Responsibility - The company has committed to a total of 2.74 million yuan for public welfare donations and agricultural product procurement to support designated assistance efforts, reflecting its commitment to social responsibility [16][17].