Gelonghui November 1st | Huafon Chemical (002064.SZ) announced the issuance of shares and payment of cash to purchase assets and related party transactions, the listed company plans to issue shares and pay cash to purchase 100% equity of Huafon Synthetic Resin held by Huafon Group, You Xiaoping, You Jinhuan, and You Xiaohua; plans to issue shares and pay cash to purchase 100% equity of Huafon Thermoplastic held by Huafon Group.
This transaction belongs to the merger and acquisition of the polyurethane industry under the same control. Huafon Chemical, Huafon Synthetic Resin, and Huafon Thermoplastic all belong to the polyurethane industry chain and their products are used in different segments of polyurethane products.
Before this transaction, the listed company was mainly engaged in the research and development, production, and sales of spandex fibers, polyurethane raw materials, adipic acid, and other polyurethane products. Huafon Synthetic Resin is mainly engaged in the research, production, and sales of leather-grade polyurethane resins, and Huafon Thermoplastic is mainly engaged in the research, production, and sales of thermoplastic polyurethane elastomers.
This transaction is an important measure for the listed company to broaden its business scope and achieve long-term sustainable development. By acquiring Huafon Synthetic Resin and Huafon Thermoplastic, the listed company integrates and extends its industry chain, entering the field of leather-grade polyurethane resins and thermoplastic polyurethane elastomers in the polyurethane industry. This enriches the types of business and product lines of the listed company, helping to enhance its risk resistance, profitability, and sustainable development capabilities. Both parties in the transaction can fully leverage synergies, effectively reduce procurement and production costs, improve operational efficiency, expand overall market share, increase business income, and create a positive synergy effect.
After this transaction is completed, Huafon Synthetic Resin and Huafon Thermoplastic will become wholly-owned subsidiaries of the listed company. The prospects in the field of leather-grade polyurethane resins and thermoplastic polyurethane elastomers where Huafon Synthetic Resin and Huafon Thermoplastic are located are broad, and their business performance is good. Through this acquisition, the listed company will increase its revenue scale, enhance profitability, increase company value, and improve the return level for a wide range of small and medium shareholders.
Having applied to the Shenzhen Stock Exchange, the company's stocks will resume trading starting from November 4, 2024.
