Shan new material to succeed Cedar Qixiang Tengda new owner

On November 14, Qixiang Tengda revealed that on November 12, the bankruptcy reorganization plan of Qixiang Group, the company's holding shares, had been approved by the Zibo Middle Court, and the bankruptcy reorganization process entered the execution stage.

On the same day, Qixiang Tengda announced "Zibo Qixiang Tengda Chemical Co., LTD. Summary of Tender Offer", Cedar Industrial Group Co., Ltd. held 80% of the shares of Qixiang Group will be transferred to Qixiang Group restructuring investor Shandong Energy Group New Materials Co., LTD. (referred to as "Shaneng New Materials"). As a restructuring investor, I obtained 80% of the shares of Qixiang Group through the restructuring process, and then indirectly controlled 45.91% of the shares of listed companies held by Qixiang Group. Qixiang Group is the controlling shareholder of Qixiang Tengda, holding 1.305 billion shares of the company.

To fulfill relevant regulations, Shanneng New Materials shall make a general offer to all shareholders of Qixiang Tengda except Qixiang Group at the tender offer price of 7.14 yuan/share. The announcement also noted that the offer does not terminate Qixiang Tengda's listing status for the purpose.

On Oct. 10, Qixiang Tengda said the Intermediate People's Court of Zibo, Shandong Province, ruled to accept the application by Shandong International Trust Co., Ltd. to restructure Qixiang Group, the controlling shareholder of the respondent company.

Shanneng New Materials, a wholly-owned secondary subsidiary of Shandong Energy Group, is the main investment and management body of new materials industry development of Shandong Energy Group. The group mainly focuses on coal mining, and at the same time develops a comprehensive enterprise group including modern high-end fine chemical industry, domestic and foreign high-quality bulk mining, diversified financial industry, modern logistics and trade, high-end manufacturing and other industries. The group also holds the listed company Yankuang Energy.

The tender offer also revealed that, other than the tender offer, Saneng New Materials has no plans to continue to increase its stake in the Company or dispose of shares in which it already has an interest in the next 12 months.

For the acquisition, Qixiang Tengda said that after Shanneng New Materials becomes the indirect controlling shareholder of the listed company, it will rely on its own and the resource advantages of its parent company Shandong Energy Group, support the listed company to steadily promote the strategic layout of the carbon three industrial chain, improve the production integration of midstream plants, and accelerate the digital transformation on the basis of comprehensively doing fine and fine carbon four industrial chain. Layout of downstream products refined, high-end, scale, at the same time to increase the listed company's overseas business expansion efforts, ease the pressure of the domestic market, continue to deepen its strategic coordination with Shanneng New Materials, Shandong Energy Group in the industrial plate, focus on improving the listed company's market competitiveness and industry influence, to enter the world's first-class chemical enterprises.

According to the third quarter financial report of Qixiang Tengda, the sales revenue of Qixiang Tengda from January to September 2022 was 23.3 billion yuan, down 9.62% compared with the same period last year; The cumulative net profit of the mother was 1.049 billion yuan, decreased by 51.49% year-on-year; After deducting non-net profit to the mother also reduced 51.67% to 1.025 billion yuan, basic earnings per share was 0.38 yuan/share.