CWPC always adheres to the strategy of diversified development, it turns its attention to new materials industry –graphene,after production transformation has been successfully made .
On the evening of October 10, 2016, CWPC released an announcement that it acquires 15% stock rights of Hengli Shengtai(Xiamen) Graphene Science &Technology Co.,Ltd.,(Hengli Shengtai for short hereinafter )using 1.35 billion RMB. On the afternoon of October 11, 2016,CWPC held an illustration meeting for investors. Stock of CWPC resumed on October 12,2016.
Chairman Li Renchao introduced that in order to eliminate horizontal competition and reduce associated transactions, according to communication, negotiation and repeated analytic demonstration for this proposal of major asset restructuring, asset scope ,which plans to acquire and equity ratio, we still need a certain amount of time to complete all the procedures of administrative examination and approval related to production and operating activities and to integrate similar businesses overseas ,which are controlled by the real controller .At the same time ,the listed company needs sometime to observe and evaluate the sustainability of production and management of the subject company and the realizability of promised profit target. Conditions to advance major assets restructuring are not yet mature at current stage. In order to protect the interest of all shareholders,CWPC finally decides to acquire 15% stock rights of Hengli Shengtai(Xiamen) Graphene Science &Technology Co.,Ltd.,using 1.35 billion RMB after repeated negotiation with related parties.
This new acquisition proposal is the theory-to-practice and adjustment for the previous one and it doesn’t change the strategic thinking for new materials and the acquisition shows the determination and confidence of CWPC to transform and upgrade and build diversified strategies.
Study and application of grapheme in China are at the preliminary stage. Hengli Shengtai ,as the pioneer of industrialized mass production of single-layer grapheme, will overcome the bottleneck of commercial application of grapheme and advance application of graphene to step in the fast -traffic lane of industrialization. At the same time ,Hengli Shengtai has strong mass-production capacity of single-layer graphene ,main products include single-layer oxidized graphene solution and dry powder, pure graphene powder ,etc. Product lines cover raw material of graphene, series of products of intermediate phase and down stream.Its industry chain is complete and owns 25 patents . Real controller of underlying asset,Zhang Bozeng , authorizes 25 patents about graphene in 2002 to Hengli Shentai ,which accelerates the production and technology promotion of graphene.
It is said that commissioning of related equipment for the mass-production base of graphene which is invested by Hengli Shengtai has been completed .On September 6,2016,this base was under pilot run in Xiamen . It is estimated that the production capacity will reach 300 tons in 2017 and it is also the first mass-production base of graphene in Xiamen. In the coming years,production capacity of Hengli Shengtai will be doubled .According to financial data disclosure, operation revenue of the subject company is 332 million RMB during Jan.to Aug. in 2016, net profit which belongs to the owner of parent company is 228 million RMB,showing good profitability. Performance commitment period of the subject company are three years which are 2016,2017 and 2018,net profit respectively is 500 million RMB ,600 million RMB and 700 million RMB.
It is the first step that CWPC cooperates with Hengli Shengtai to step in graphene industry .CWPC will still pay attention to the development of graphene industry and actively cooperate with the subject company to further expand the terminal utilization of graphene products by making use of advantages of the subject company .At the same time ,we perfect the business layout through m&a integration for quality enterprises of related industries and realize great-leap-forward development by making use of advantages of listed company .
It is the first step that CWPC cooperates with Hengli Shengtai to step in graphene industry .CWPC will still pay attention to the development of graphene industry and actively cooperate with the subject company to further expand the terminal utilization of graphene products by making use of advantages of the subject company .At the same time ,we perfect the business layout through m&a integration for quality enterprises of related industries and realize great-leap-forward development by making use of advantages of listed company .