Wanhua Chemical to sell 100% stake in Shanghai Wanhua Keju

Wanhua Chemical announced that the company intends to publicly list and transfer 100% equity of its wholly-owned subsidiary Shanghai Wanhua Keju, and the appraised value of all equity of Shanghai Wanhua Keju is 731 million yuan. The company said that this transaction can revitalize the assets, improve the efficiency of capital use, and will have a positive impact on the company's financial situation in 2020.

The background of Wanhua Chemical's proposed transfer of Shanghai Wanhua Cojuice is that Yantai Magnetshan Global R&D Center has been completed and put into use, Ningbo Institute of High Performance Materials is under construction, and the functions of Shanghai Integrated Center will be mainly undertaken by the above two, therefore, Wanhua Chemical intends to transfer Shanghai Integrated Center to external parties in order to revitalize its assets.

According to the disclosure, the company intends to transfer 100% equity of its wholly-owned subsidiary, Shanghai Wanhua Keju, through Yantai Joint Property Right Exchange, at a listing price not lower than the approved appraisal result. After the transfer, Shanghai Wanhua Keju will no longer be included in the scope of the Company's consolidated financial statements.

In fact, since Shanghai Wanhua Keju is the implementation subject of Wanhua Shanghai Integrated Center project, the transaction can be regarded as the transfer of the fundraising project.At the end of 2015, the company issued a directional had issued a pre-proposal to raise 2.5 billion yuan, which will be invested in 200,000 tons/year polycarbonate project, Wanhua Chemical Shanghai Integrated Center, as well as repaying bank loans and replenishing liquidity. As of July 20, 2020, the project of Wanhua Chemical Shanghai Integrated Center has been closed, and the actual amount invested is 380 million Yuan.

Established on October 25, 2012, with a registered capital of RMB 499,999,950,000, Shanghai Wanhua Keju is engaged in technology transfer, technology development and technical services in the field of chemical industry, sales of chemical raw materials and products, and human resource services in the form of service outsourcing.

Wanhua Chemical said, this transaction will further integrate the company's human resources, promote research and development to better serve the production, while activating assets and improving the efficiency of capital use, which is in line with the company's strategic planning and actual business development needs, and will have a positive impact on the company's financial situation in 2020.
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