Xinjiang Tianye acquires 100% equity of Tianneng Chemical

On the morning of May 7, Xinjiang Tianye Co., Ltd. (hereinafter referred to as the "Company") issued an announcement that the company issued shares, convertible bonds and paid cash to purchase Xinjiang Tianye (Group) Co., Ltd. and Shihezi Jinfu State-owned Capital Investment Operation Co., Ltd. holds 100% equity of Tianneng Chemical Co., Ltd. (hereinafter referred to as "Tianneng Chemical") and raises supporting funds and related transactions have been approved by the China Securities Regulatory Commission. Approval of the “Response for Industry (Group) Co., Ltd., etc. to issue shares, convertible bonds to purchase assets and raise supporting funds”.

The announcement shows that after receiving the above-mentioned approval documents, the company promptly carried out the relevant work of transfer of the underlying assets. On April 30, 2020, Tianneng Chemical has completed the industrial and commercial registration procedures for the transfer of assets involved in this transaction, and obtained the "Business License" with the unified social credit code 91659001552437577B issued by the Market Supervision Administration of the Eighth Division. . After the completion of this change, the company held 100% equity of Tianneng Chemical, and Tianneng Chemical became a wholly-owned subsidiary of the company.

Through this acquisition, Xinjiang Tianye was able to extend the industrial chain from special PVC to ordinary PVC, and increase the supply of PVC varieties while further enhancing the coordination of the industrial chain.

Xinjiang Tianye has an annual production capacity of 200,000 tons of special PVC (including 100,000 tons of paste resin), and Tianneng Chemical's ordinary PVC production capacity is 450,000 tons / year. After the acquisition is completed, the company's production capacity will be greatly improved.

It is understood that Tianye Group, the controlling shareholder of Xinjiang Tianye Group, has made breakthrough progress in advancing the PVC modification technology. The synergistic development advantages of Xinjiang Tianye and Tianye Group will become more obvious in the future.

In 2019, the total global consumption of PVC reached 47 million tons. The data forecast shows that the PVC market demand is gradually improving. The compound annual growth rate for the next 6 years is 3.3%. The downstream consumer fields are concentrated in pipes, profiles, films, wires and cables , Floor leather, etc. Among them, the growth of demand in emerging markets such as India and Vietnam is even stronger.

It is also reported that the 600,000-ton / year ethylene glycol project of Xinjiang Tianye and Tianye Group's 1 million-ton / year syngas-to-low-carbon alcohol first-phase project is also the focus of the capital market. Xinjiang Tianye said that at present, the design work, equipment ordering and civil construction of the project have been completed, and the installation work is nearing completion. The core device and the construction section have entered single-machine debugging, and the auxiliary device has achieved joint debugging and joint testing.

Xinjiang Tianye stated that the construction capital investment of the ethylene glycol project was proceeding as planned, but affected by the new coronavirus epidemic, the project commissioning progress in the first quarter of this year was delayed compared to the plan. As of now, it has been fully resumed, and strives to be put into trial operation as soon as possible to promote the formation of diversity The industrial pattern of development and multi-polar support.

On April 30, the company ’s first quarter report for 2020 revealed that in the first quarter, the average sales price of Xinjiang Tianye ’s flagship product, paste resin, reached 7,200 CNY/ton, an increase of 35.39% from the same period in 2019. product. In addition, the subsidiary Tianwei Chemical exceeded expectations, and the output of paste resin reached 28,500 tons, an increase of 0.13 million tons year-on-year. Although the sales volume decreased slightly, it still achieved an increase of 33.08 million yuan.

In the first quarter of this year, Xinjiang Tianye achieved an operating income of 840 million yuan, a year-on-year decrease of 16.4%, and the decrease was greater than that of the same period last year. It achieved a net profit attributable to its mother of 23.187 million, a decrease of 10.4% year-on-year.

Judging from the production and sales data of the company's other major products in the first quarter, the sales of the three products of electricity, steam and calcium carbide have achieved different degrees of growth compared with the same period last year. Among them, electricity and steam products faced the unfavorable factors of price decline, and realized price supplements by volume, with a total increase of 73.33 million yuan; under the condition of a slight price increase, the sales of calcium carbide products increased by more than 3 times and increased by 111 million yuan.