On June 16, 2020, Luxi Chemical [000830.SZ] issued an announcement that the listed company received a notification from the controlling shareholder Luxi Group. Luxi Group completed the industrial and commercial change registration for this transfer on June 15, 2020. Procedures, and obtained the "Business License" after renewal. Sinochem Group became the controlling shareholder of Luxi Group and the actual controller of the listed company Luxi Chemical. Ning Gaoning, chairman of Sinochem Group, also served as chairman of Luxi Group.
So far, Sinochem Investment and its concerted parties held a total of 55.01% equity in Luxi Group, and Sinochem Investment obtained control of Luxi Group. The actual controller of the company was changed from the Liaocheng State-owned Assets Supervision and Administration Commission to the State-owned Assets Supervision and Administration Commission of the State Council, a wholly state-owned company, China Sinochem Group Co., Ltd. The company’s controlling shareholder remained unchanged and remained the Luxi Group.
Acquisition review
1. On October 29, 2019, Sinochem Group's official website announced that Sinochem Investment, a subsidiary of Sinochem Group, had completed the industrial and commercial registration for the acquisition of 39% equity in Luxi Group, and Sinochem Investment became the second largest shareholder of Luxi Group.
2. On December 17, 2019, the Liaocheng State-owned Assets Supervision and Administration Commission deliberated and approved the transfer of 6.01% of the shares held by Luxi Group to Liaocheng, Sinochem;
3. On December 19, 2019, Sinochem Group held the fifth general manager's office meeting in 2019, and reviewed and approved that Sinochem Liaocheng obtained 6.01% equity of Luxi Group through free transfer;
4. On December 19, 2019, Sinochem Group issued "Approval on the Restructuring of Luxi Group Co., Ltd.'s Equity Restructuring Project" (Sinochem Innovation [2019] No. 75) to Sinochem Investment, agreeing to this transfer;
5. On December 19, 2019, Sinochem Investment issued a shareholder decision to Sinochem Liaocheng, agreeing to this transfer
6. On December 20, 2019, Liaocheng SASAC and Sinochem Liaocheng signed the "Share Transfer Agreement". Luxi Group is the direct controlling shareholder of Luxi Chemical. After the transfer is completed, Sinochem Investment and its concerted parties, Sinochem Liaocheng and Liaocheng Convergence Equity Investment Co., Ltd., will indirectly control 33.60% of Luxi Chemical’s shares through Luxi Group and achieve control of Luxi Chemical. The actual controller of Luxi Chemical will be changed from Liaocheng State-owned Assets Supervision and Administration Commission to Sinochem Group, a wholly state-owned company.
Accelerate development in the field of new materials
Sinochem International is a second-tier company of Sinochem Group, a Fortune 500 company, and the undertaker of Sinochem's core main business, "Innovative Fine Chemicals Business." Since its listing, Sinochem International has launched a series of investment mergers and acquisitions in the chemical industry, such as the acquisition of Monsanto’s amide pesticide business in China in 2003, the acquisition of Hainan Rubber and Banna Rubber from 2004 to 2006, and the acquisition of Jiangshan in 2007 28% stake and Ouma Rubber Factory in Malaysia, acquired 51% stake in Singapore-listed company GMG GLOBAL LTD in 2008, acquired Jiangsu Shengao Chemical Technology Co., Ltd in 2013, and acquired the holding of Singapore-listed company Halcyon Agri (Hesheng) in 2016 Rights, etc., and gradually expand the business layout and market position of enterprises in the global chemical industry.
In recent years, Sinochem International is taking "scientific and technological innovation" as its driving force, and has listed "new energy, new materials, and biological industries" as its three major strategic directions.
After nearly 10 years of continuous structural adjustment and innovative development, Luxi Group has gradually transformed from a traditional fertilizer company into a domestic first-class new chemical materials company. The cooperation with Luxi Group is an important part of the cooperation between Sinochem Group and Shandong Province in the field of high-end chemical (new materials), and it is also a powerful measure for Sinochem Group to further enhance its innovation capabilities and industrial strength in the field of new chemical materials.
After the completion of this transfer, Sinochem Group will support the Luxi Group to accelerate its development by expanding investment and industrial chain coordination, and strive to build a world-class chemical new materials industrial park to promote Luxi Group’s progress in the field of new chemical materials. Upgrade from domestic first-class to international first-class. Luxi Group will further upgrade the industrial structure of new chemical materials and high-end chemical equipment with two-wheel drive.
Luxi Group
It is a state-owned holding enterprise group in Liaocheng City, Shandong Province, with basic chemical industry, new chemical materials, chemical fertilizers, design and R&D, chemical equipment and engineering, new energy equipment, international trade and other industrial sectors. At present, Luxi Group has formed a relatively complete "coal, salt, fluorine, silicon and petrochemical" interrelated product chain, mainly producing polycarbonate, caprolactam, nylon 6, formic acid, hydrogen peroxide, polyol, green refrigerant, organic More than 100 kinds of products such as silicon, methane chloride, caustic soda, benzyl chloride, methanol and urea.
Sinochem Group
Leading integrated operator of the petroleum and chemical industries, agricultural inputs (seeds, pesticides, fertilizers) and modern agricultural service integrated operation enterprises, and has strong influence in urban development and operation and non-bank financial fields. Sinochem Group has set up five major business divisions in energy, chemical, agriculture, real estate and finance to conduct professional operations for more than 300 operating institutions at home and abroad.
