Yanzhou Coal Industry issued an announcement stating that the company intends to acquire 7 related assets of the controlling shareholder Yankuang Group for approximately 18.355 billion yuan in cash. Among them, Yankuang Lunan Chemical Co., Ltd. ("Lunan Chemical" for short) is one of the main assets of the transaction target.
As Lunan Chemical with a 53-year history of development, it is positioned to build a leading innovative coal-based new material enterprise in the country. The company's acquisition of Lunan Chemical aims to extend the industrial chain and achieve coordinated business development. According to reports, Lunan Chemical has a long history and leading technology in the coal chemical industry.
Shandong Lunan Chemical Fertilizer Plant, the predecessor of Lunan Chemical Industry, took the lead in introducing the world's fifth and China's first Texaco coal-water slurry gasification demonstration device in October 1987, and continuously broke through long-term operation through independent digestion and absorption. The record puts my country into the world's advanced ranks of clean coal utilization. Since then, the Lunan Fertilizer Plant has cooperated with East China University of Science and Technology to implement revolutionary innovations in coal-water slurry gasification technology. In one fell swoop, it achieved the successful industrialization of a new type of multi-nozzle opposed gasifier, breaking the foreign influence on my country’s coal gasification and carbonylation. The monopoly of advanced technologies such as legal acetic acid is known as a "China Eastman" chemical enterprise. In 2019, a new type of gasifier with a daily input of 4,000 tons of coal was completed and put into operation at Yankuang Rongxin Chemical, achieving another breakthrough in the large-scale technology.
Under this development positioning, Lunan Chemical has accelerated the progress of many projects. On June 28, the high-end modified polyoxymethylene project (alcohol-based new material) was completed and put into production, and qualified polyoxymethylene products were produced in one batch. The annual production of 300,000 tons of caprolactam and supporting engineering projects will also be put into production in September 2021. Lunan Chemical's caprolactam plant is the largest single set of equipment under construction in China, and its technology is at the leading domestic level. The product quality has fully reached the national premium grade standard, meeting the product quality requirements of the caprolactam high-end market mainly high-speed spinning chips.
It is estimated that after the caprolactam project is completed and put into operation in September 2021, Lunan Chemical’s main operating income will exceed 10 billion yuan. With the completion of the OMB powder coal gasifier project, 200,000 tons/year acrylic acid and 600,000 tons/year With the gradual implementation of projects such as olefins and 200,000 tons/year EVA, Lunan Chemical will realize the plan of recreating "several new Luhua" with the goals of large-scale, park-based, high-end, and terminalization.
Therefore, from the perspective of the composition of the acquired assets, the 49.315% equity of Future Energy is valued at 10.818 billion yuan, and the 100% equity of Lunan Chemical is valued at 6.187 billion yuan. Both companies are mainly engaged in coal chemical business. According to the disclosed data, Future Energy's operating income and net profit in 2019 were 8.752 billion yuan and 2.245 billion yuan, respectively. Lunan Chemical's operating income and net profit in 2019 were 6.31 billion yuan and 389 million yuan.
Yanzhou Coal Industry stated that through this transaction, the company can realize the integration of the coal chemical business of Yankuang Group, extend the industrial chain, optimize the company’s main business, enhance the company’s profitability and risk resistance, and enhance the company’s value and shareholder returns. . After the transaction is completed, the target company and target assets will be added to the scope of the company’s consolidated statement, which can increase the company’s total assets, increase the company’s operating income, and exert synergy and scale effects; by extending the industrial chain, it can improve overall operating performance and profitability, and enhance The company’s ability to sustainably develop and resist risks helps protect the interests of the company’s shareholders. In addition, after the completion of the acquisition, related transactions between the company and Yankuang Group will also be reduced, which will help improve the company's standard operation level.
Source: Mobile Public Account
