Beijing News (reporter Zhu Yueyi) after Dongfang Shenghong, Shenghong group will take shares in the second state-owned listed company.

According to the transaction plan disclosed by Danhua Chemical Technology Co., Ltd. (hereinafter referred to as “Danhua technology”), it plans to issue a shares to all shareholders of Jiangsu silbang Petrochemical Co., Ltd. (hereinafter referred to as “silbang”) at the issue price of 3.66 yuan / share to purchase 100% equity of silbang held by it; After the completion of this transaction, Shenghong petrochemical and Bohong industry, the person acting in concert, will hold about 63.86% of the shares of the company. Shenghong Petrochemical will become the controlling shareholder of the listed company, and Miao Hangen and Zhu Hongmei will become the actual controllers of the company.

On June 14, Danhua technology resumed the trading limit, up 9.95% to 4.31 yuan, with a turnover of 1.79 million yuan.

Danhua technology announcement shows that the initial price of the target assets to be purchased this time is 11 billion yuan. Based on the purchase price of 3.66 yuan / share of the issued shares, it is proposed to issue 3.005 billion shares to all shareholders of sierbang, including 2.432 billion shares to Shenghong petrochemical, 137 million shares to Bohong industry, 273 million shares to CCB investment and 164 million shares to BOC assets.

Sierbang, the subject of this transaction, was established in 2010. The controlling shareholder is Shenghong petrochemical. Miao Hangen and Zhu Hongmei jointly control 85.45% of the equity of sierbang through Shenghong petrochemical and Bohong industry, and are the actual controllers of sierbang.

Danhua technology said that the fair brought changes to the main business of listed companies: before the transaction, listed companies were mainly engaged in coal chemical related industries, the main product structure was relatively single, and the net profit attributable to shareholders of the parent company fluctuated greatly after deducting non recurring profits and losses. Through this transaction, the company will place chemical assets with strong profitability. The company’s main business will be the R & D, production and sales of olefin derivatives with new added value. The main product range will further cover a series of diversified petrochemical and fine chemicals such as acrylonitrile, MMA, EVA, EO and their derivatives. The profitability has been greatly improved, making the company become an enterprise with strong market competitiveness, Thus, it is conducive to improve the sustainable operation ability of listed companies and protect the interests of all shareholders of listed companies, especially small and medium-sized shareholders.

According to the transaction plan, the net profits attributable to shareholders of Danhua technology after deducting non recurring profits and losses in 2016, 2017 and 2018 were -171.0886 million yuan, 34.4256 million yuan and -11.9676 million yuan respectively, with relatively weak profitability and large fluctuations.

The latest quarterly report of 2019 shows that the revenue of Danhua technology during the reporting period was 260 million yuan, a decrease of 27.80% over the same period last year; The net profit attributable to shareholders of the listed company was -66.8144 million yuan, compared with 6.3452 million yuan in the same period of last year.

In addition, before the transaction, Jiangsu Danyang Municipal People’s government held 19.79% of the equity of the listed company through Danhua group and its persons acting in concert, which is the actual controller of the listed company. Danhua technology disclosed on the transaction background that in response to the call of the national mixed ownership reform, the transaction plans to introduce high-quality private capital to become the controlling shareholder of the listed company, and place excellent chemical assets by issuing shares to buy assets. Through the in-depth integration between high-quality assets and listed companies, we will further revitalize state-owned assets and maintain and increase their value.

According to the announcement released on the same day of Danhua technology and transaction plan, last year, Danyang state owned assets supervision and Administration Office planned to introduce Henan energy and Chemical Group Co., Ltd. as a strategic investor to restructure Danhua group, so as to fully integrate the advantages of both sides in industry, technology and management, and expand and strengthen coal chemical related industries, including ethylene glycol, but this plan was finally terminated.

Danhua technology will be Shenghong’s second listed company.

As early as 2007, Miao Hangen, chairman of Shenghong, proposed in his speech to realize listing operation within 3 to 5 years. The listing target of 3-5 years was not achieved, and Shenghong chose backdoor.

In August 2017, the Eastern market, a state-owned enterprise listed in Suzhou, issued a draft of major asset restructuring. The Eastern market plans to issue 2.757 billion shares to Shenghong technology and Guokai fund at a price of 4.63 yuan / share, and purchase 100% equity of Guowang high tech at a price of 12.762 billion yuan, forming a backdoor listing. After a veto, the backdoor was adopted and implemented in 2018. In September 2018, the abbreviation of Oriental market securities was officially renamed “Dongfang Shenghong”.

This year, Dongfang Shenghong, a listed company of Shenghong, continued to step up its expansion.

In February, Dongfang Shenghong prepared to invest 1 billion yuan to establish a wholly-owned subsidiary, Jiangsu Shenghong Petrochemical Industry Development Co., Ltd. In March, Jiangsu Guowang high tech fiber Co., Ltd., a wholly-owned subsidiary of Dongfang Shenghong, planned to purchase 100% equity of Suzhou Suzhen Bioengineering Co., Ltd. held by Shenghong new materials with 67.9998 million yuan in cash.

In March, Dongfang Shenghong invested about 77.5 billion yuan in the construction of “Shenghong 16 million T / a refining and chemical integration project”. In April, Dongfang Shenghong planned to increase its wholly-owned subsidiary Jiangsu Shenghong Petrochemical Industry Development Co., Ltd. by 9 billion yuan in currency with its own funds or self raised funds. In May, Jiangsu Honggang Petrochemical Co., Ltd. of Dongfang Shenghong will invest in the construction of 2.4 million T / a purified terephthalic acid (PTA) expansion project, with an estimated total investment of 3.858 billion yuan.

But at the same time, the debt scale of Dongfang Shenghong is also increasing.

From 2015 to the end of 2018 and the first quarter of 2019, the total liabilities of Dongfang Shenghong were RMB 1.164 billion, RMB 1.501 billion, RMB 6.898 billion, RMB 9.666 billion and RMB 10.296 billion respectively. Correspondingly, the debt ratios of Dongfang Shenghong were 26.45%, 30.22%, 18.70%, 40.75% and 43.82% respectively.

For Dongfang Shenghong, how to promote the super large project with a scale of up to 77.5 billion yuan has attracted much attention. At that time, Shenghong replied to the Beijing News reporter that it was an industry practice to use the capital market to finance the construction of refining and chemical projects. Dongfang Shenghong would make full use of the capital operation platform of listed companies and through equity financing, creditor’s rights financing and other forms according to the construction progress of the project