Jiangshan intends to acquire no less than 67% of the shares of WFCF to expand the phosphorus chemical industry chain

On Dec 20, 2022, Jiangshan issued an announcement on the signing of the Agreement of intent to purchase equity.

In order to further expand the phosphorus chemical industry chain and enhance the comprehensive competitiveness of the company, on Dec 19, 2022, Jiangshan, Wujin, Songge and Shuangma Chemical signed the" Agreement of Intent to Purchase the equity of WFCF". The Company intends to acquire no less than 67% of the shares of WFCF which was held by the above three corporate shareholders in cash. The specific transfer proportion of each corporate shareholder shall be determined according to the subsequent negotiation, and the specific transfer amount shall be determined through negotiation after evaluation.

The registered capital of WFCF is ¥150 million, among which Wujin , Songge and Shuangma hold 42.40%, 37.60% and 20.00% respectively.

The business scope of the company includes: 1-Hydroxyethane-1,1-diphosphonic Acid , ATMP, 2-Phosphonobutane-1,2,4-tricarboxylic acid, Carbohydrazide, Polyacrylic acid, Polyisopropylphosphonic acid, HPMA, 2-acrylamido-2-methylpropanesulfonic acid-acrylic acid copolymer, DETPMP, PAPEMP, Hexamethylenediamine tetramethylene phosphonic acid, Ethylenediamine Tetramethylenephosphonic acid, Acetyl chloride,Phosphorous acid and methanol.

By the end of 2021, the total assets of WFCF were ¥344.94 million , the net assets were ¥225.88 million, the operating revenue was ¥407.33 million and the net profit was ¥35.88 million. By the end of Sept 2022, the total assets of WFCF were ¥357.95 million, the net assets were ¥263.76 million, the operating income from January to September 2022 was ¥339.99 million, and the net profit was ¥49.09 million.