ENGLISH
|
JAPANESE
|
CONNECT WITH US:
Home
About
Contact
Log in
*
Home
Press release
Dec 23, 2020 19:08 JST
Source:
China Risun Group
China Risun Acquisition of Six Hongye Chemicals Enterprises Approved at EGM
Further Leverages the Economics of Scale, Resources and Cost Advantages of these Acquisitions to Strengthen the Leading Position in the Market
HONG KONG, Dec 23, 2020 - (ACN Newswire) - China Risun Group Limited ("China Risun", or the "Group", stock code: 1907), the global leading integrated coke, coking chemical and refined chemical producer and supplier in China, held an Extraordinary General Meeting in Hong Kong and obtained the approval of the acquisition of six Hongye Chemical Enterprises for RMB4.85 billion. Upon completion, the Group can further leverage the economics of scale, resources and cost advantages of these acquisitions to strengthen its leading position in the market.
The Group is committed to continuously explore market opportunities to provide operations management services and expand its business through acquisitions and joint ventures. This transaction is in line with the Group's expansion strategy to capture the potential growth of coke and refined chemicals market and can strengthen the Group's leading position in the market. Given the six Hongye Chemicals Enterprises' production capacity, scale of operation and the market share in their respective regions and considering the Group's expansion plan, the Group believes that the transaction is conducive to the future business expansion of the Company. Moreover, by operating two green factories recognized by the Ministry of Industry and Information Technology of China, the Group can demonstrate through this transaction how to promote industry consolidation and improve coking enterprises by enhancing outdated production facilities. It can further promote the Group's image by taking a leading role in consolidating the standard of environmental protection in the coke industry. It is expected to create synergy with the Group's existing business.
Since July 2019, China Risun has been providing operations management services for the six Hongye Chemicals Enterprises and has been fully responsible for their production, management and operation. The six Hongye Chemicals Enterprises previously were sizable enterprises with a complete industrial chain under the chemical sector of Hongye Group, and they are principally engaged in the production of coke and coking products as well as refined chemicals supply.
After the completion of this transaction, China Risun will be able to expand its geographical reach with the operations and management services business capabilities, and increase the total production of coke and coking products. The Group currently has an annual production capacity of 150,000 tons of caprolactam in its Cangzhou Production Base. The Group's annual production capacity of caprolactam is expected to increase to 350,000 tons by consolidating the annual production capacities of the six Hongye Chemicals Enterprises. (Note: Caprolactam is one of the important organic chemical raw materials. The main purpose is to generate polyamide slice PA6 through polymerization, which can be used in high-end fashion, high-end plastic products, tires, food and drug preservation, outdoor protective equipment, fishery, parachutes, Ropes and other fields). The six Hongye Chemicals Enterprises are based in the Shandong province of China, which is one of the major sales locations of the Group where many of its customers are based. The Group can sell the products manufactured by the six Hongye Chemicals Enterprises to the Group's customers directly from the new production locations which can lower the transportation costs and increase the Group's competitive advantages. Furthermore, the Group can further procure raw materials by economics of scale and enlarge its price spread between its products and its raw materials. This can achieve a higher gross profit margin for the coke products as well as the refined chemical products.
About China Risun Group Limited
China Risun Group Limited is the world's largest independent producer and supplier of coke by volume in 2019, according to Frost & Sullivan. China Risun is an integrated coke, coking chemicals and refined chemicals producer and supplier in China and holds leading positions in a number of refined chemicals sectors both in China and globally. The vertically-integrated business model together with more than 25 years of experience in the coal chemicals industry production chain has enabled China Risun to further tap the downstream refined chemicals markets and hence diversify its income sources and create greater value.
China Risun has been listed on the main board of the Hong Kong Stock Exchange since March 2019 and is now included in various index series, including Hang Seng Composite Index, Hang Seng Stock Connect Hong Kong Index, Hang Seng Stock Connect Hong Kong MidCap & SmallCap Index, Hang Seng Stock Connect Hong Kong SmallCap Index, Hang Seng SCHK Mainland China Companies Index, and Hang Seng SCHK ex-AH Companies Index. For more details, please visit
http://www.risun.com/En/
Media enquiries
Strategic Financial Relations Limited
Mandy Go Tel: +852 2864 4812 Email:
mandy.go@sprg.com.hk
Stephanie Liu Tel: +852 2864 4852 Email:
stephanie.liu@sprg.com.hk
Carven Tsui Tel: +852 2864 4859 Email:
carvensm.tsui@sprg.com.hk
Website:
http://www.sprg.com.hk
Source: China Risun Group
Sectors: Daily Finance, Daily News
Copyright ©2024 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.
Latest Release
Hitachi High-Tech and University of Tokyo Promote Joint Research for the Practical Application of High-resolution Laser-PEEM in the Semiconductor Field
Nov 07, 2024 18:19 JST
Mitsubishi Motors Acquires Its Own Shares from Nissan
Nov 07, 2024 17:20 JST
Honda Signs Sponsorship Agreement to Provide Electrified Vehicles at World Athletics Championships Tokyo 25
Nov 07, 2024 17:10 JST
Home of Fujitsu joint conservation project designated as first Nationally Certified Sustainably Managed Natural Site in Okinawa
Nov 07, 2024 14:51 JST
NEC and NEC Bio publish foundational work on T Cell Receptor engineering using proprietary generative AI at the Society for Immunotherapy of Cancer annual meeting
Nov 07, 2024 11:40 JST
Anime Tokyo Station 1st Anniversary Event: Celebrating one year since the opening of the new hub for sharing Japanese anime
Nov 07, 2024 11:00 JST
57% of Banking Executives Struggle with Data Silos, Blocking AI-Driven Personalization, CleverTap's New Report Highlights
Nov 06, 2024 15:30 JST
Honda Unveils Electric Motorcycle Concept Models "EV Fun Concept" and "EV Urban Concept" at EICMA 2024
Nov 06, 2024 14:15 JST
Yoshimoto Kogyo and Mitsubishi Corporation have signed a business partnership agreement for co-creation of business using "laughter"
Nov 06, 2024 11:51 JST
Honda to Begin European Verification Test of Battery Sharing Service with GoCimo
Nov 06, 2024 10:39 JST
Honda Unveils World's First and New V3 Engine with Electrical- Compressor at EICMA 2024
Nov 06, 2024 09:03 JST
Victory and world title for TOYOTA GAZOO Racing
Nov 05, 2024 17:59 JST
Tokyo Stock Exchange and Fujitsu announce renewal of cash equity trading system 'arrowhead4.0'
Nov 05, 2024 17:13 JST
Mitsubishi Heavy Industries Continues Order Intake, Revenue, and Profit Growth in Strong First Half, Raises Full-Year Order Intake Guidance
Nov 05, 2024 14:37 JST
Eisai's Corporate Venture Capital Subsidiary, Eisai Innovation, Inc., Selected for AMED's 'Strengthening Program for Pharmaceutical Startup Ecosystem"
Nov 05, 2024 11:35 JST
Asahi Kasei and Honda Sign Shareholders' Agreement to Convert Existing Asahi Kasei Subsidiary into Joint Venture for Production of Lithium-ion Battery Separators in Canada
Nov 04, 2024 14:12 JST
Joby Aviation and Toyota Accelerate Efforts to Realize Air Mobility
Nov 04, 2024 09:36 JST
Eisai Completes Rolling Submission to US FDA for LEQEMBI(R) (lecanemab-irmb) Biologics License Application for Subcutaneous Maintenance Dosing for the Treatment of Early Alzheimer's Disease Under the Fast Track Status
Nov 01, 2024 13:56 JST
All-New Triton Wins Golden Award at VMARK Vietnam Design Awards 2024
Nov 01, 2024 12:43 JST
Fujitsu's groundbreaking computing technology for accelerating scientific computing wins Japan Patent Office Commissioner's Award
Nov 01, 2024 12:24 JST
More Latest Release >>
Related Release
China Risun's 2022 Revenue Ups 9.6% to RMB43.1 Billion, Profit Attributable to Owners was RMB1.9 Billion
March 31 2023 12:11 JST
China Risun's 2022 Interim Revenue Ups 21.1% to RMB22.53 Billion, Profit Attributable to Owners was RMB1.74 Billion
August 29 2022 08:05 JST
China Risun's 2021 Annual Profit Attributable to Owners Ups 58.1% to RMB2.61 billion
March 28 2022 09:39 JST
Shareholders and senior management show confidence in China Risun by increasing stakes recently
November 02 2021 12:25 JST
China Risun's 2021 Interim Profit Attributable to Owners Surges 381.7% to RMB1.69 billion
August 30 2021 07:00 JST
China Risun JV to Invest and Construct 4.7M/T Coking Project in Indonesia
July 02 2021 22:08 JST
China Risun Announces 2020 Interim Results
September 01 2020 08:40 JST
China Risun Announces 2019 Annual Results
March 31 2020 15:28 JST
China Risun Signs Strategic Cooperation Agreement with Yonyou Network
June 17 2019 16:52 JST
More Press release >>