Chengxing terminates acquisition of Hanbang Petrochemical and abandons entry into PTA Industry

On April 28, Jiangsu Chengxing Phosph Chemical Co., Ltd. (referred to as Chengxing) issued a notice on the termination of major asset restructuring. The main contents are as follows:

On April 2, 2020, the company held shareholders' meeting, and deliberated and passed the "Resolution on terminating the Major Asset reorganization" and agreed to terminate the Major Asset reorganization.

Since the launch of this major asset restructuring, the company and relevant parties have actively promoted the relevant work, due to the influence of COVID-19 epidemic situation, Chengxing Group and its related parties have delayed the clean-up work of Hanbang Petrochemical's non-operating funds, unable to complete the clean-up work before April 30, 2020. In order to effectively safeguard the interests of listed companies and the majority of investors, based on the principle of friendly consultation, the company carefully studied with the relevant parties of the reorganization and decided to terminate this major asset restructuring.

In view of the fact that this reorganization has not yet been deliberated by the shareholders' meeting, the reorganization plan has not formally come into effect, and the company has not yet participated in the production and operation of the target company, the termination of this transaction has no substantial impact on the company, it will not adversely affect the company's existing production and operating activities and financial situation, nor will it affect the company's future development strategy. When the conditions are ripe, The company will continue to actively promote the major asset restructuring with Chengxing Group.

As early as June 21, 2019, the company deliberated and passed the "proposal on Jiangsu Chengxing Phosph Chemical Co., Ltd., issuing shares, convertible bonds and paying cash to purchase assets and raise funds and related transactions" and other proposals related to this restructuring. The listed company intends to issue shares, convertible bonds and pay cash to purchase 100% equity of Hanbang (Jiangyin) Petrochemical Co., Ltd., held by Chengxing Group and Wuxi Gold Investment Holdings Co., Ltd., and raise supporting funds. After the completion of this restructuring, Hanbang Petrochemical will become a wholly-owned subsidiary of the listed company. Hanbang Petrochemical is mainly engaged in PTA production and sales.