Shengnong to buy a 60% stake in Dongfeng Pesticide

Recently, Shengnong announced the purchase of assets. In order to better promote the company's strategy, Shengnong intends to acquire 60% of Dongfeng’s equity according to the company's future development needs. After the completion of the acquisition, Dongfeng will become a controlling subsidiary of Shengnong.

Founded on October 9, 1998, Dongfeng has a registered capital of ¥28.45 million. Its business scope includes:goods import and export; Technology import and export; Fertilizer production; Pesticide production; Wholesale of pesticides; Pesticide retail.

Prior to the completion of the equity transaction, Jiayao held 100% of the equity of Dongfeng. Following the completion of the equity transaction, Shengnong will hold a 60% stake in Dongfeng and Jiayao will hold a 40% stake.

The transaction price of the proposed acquisition is ¥50.3 million. The proportion of the total assets and transaction amount in the total audited assets of Shengnong in 2021 shall not exceed 50%, and the proportion of the net assets and transaction amount in the total audited net output of the company in 2021 shall not exceed 50%.