The Polaris Group has made new progress in its cooperation with one of the world's largest polymer, petrochemical and fuel production companies, and the world's top 500 company Lyondell Basel Industries (hereinafter referred to as "Basel").
"Liaoning Baolai Chemical Co., Ltd." has officially changed its name to "Bolali Ande Basel Petrochemical Co., Ltd.". The person in charge was changed from "Wang Jun" to "Fu Limin", and the type of market entity was changed from "limited liability company (wholly owned by a legal person not invested or controlled by a natural person)" to "limited liability company (foreign investment, non-wholly owned)" with registered capital Changed to 6.5 billion RMB. In terms of equity, in addition to the Bora Group, the investor sequence has added "Basel International Holdings Co., Ltd.", and both parties have subscribed to RMB 3.250 million. The above information change date is displayed as August 15, 2020.
Baolai Chemical occupies an area of nearly 4000 acres, and currently it mainly invests in the construction of light hydrocarbon comprehensive utilization projects. The Bora Group, backed by Bora Chemical, is the largest private petrochemical company in the Northeast. Founded in 2005, it is a modern enterprise group integrating petrochemicals, logistics, transportation, and petrochemical trade.
Public information shows that previously, Bora Group and Basel decided to take Bora Chemicals as the main body for joint venture cooperation. According to the MOU-6.5 clause of the joint venture and cooperation memorandum of understanding signed by the two parties, the total project investment reached 12 billion US dollars (equivalent to 80 billion yuan) .
According to the announcement of Jinzhou Port, the former shareholder of Bora Chemical, according to Basel’s request, the overall capital ratio of the project is not less than 40%, that is, the capital investment of all parties has increased to approximately US$4.8 billion (equivalent to RMB 32 billion). About eight times the full-year net profit of Bora Group in 2019.
Jinzhou Port decided to withdraw from Bora Chemical. Jinzhou Port previously announced that Jinzhou Tengrui, a wholly-owned subsidiary of Jinzhou Port, signed an "Equity Transfer Agreement" with Bora Group, and Jinzhou Tengrui transferred its 30.77% equity in Bora Chemical to Bora Group, with a transaction amount of RMB 20,680,061 million. . The transaction price was RMB 79,741,400 premium over the book value.
According to Jinzhou Port, Bora Chemicals intends to further expand the scale of investment in a joint venture with a foreign party, and puts forward higher additional investment requirements for existing shareholders, and the project's production date has been postponed, and the large fluctuations in international crude oil prices will make the light hydrocarbon comprehensive utilization project profitable. The outlook creates greater uncertainty.
The Jinzhou Port announcement disclosed that as of December 31, 2019, the total assets of the Bora Group were 66.326 billion yuan, the total liabilities were 44.865 billion yuan, and the net assets were 21.461 billion yuan; the operating income in 2019 was 159.001 billion yuan and the net profit was 3.981 billion yuan.
