ABA Chem announced the termination of the 3,000 t/a pesticide and related chemicals at the Binhai Base

On May 16, 2024, ABA Chem announced that the company intends to terminate some of the raised capital investment projects and permanently supplement the remaining raised funds to its working capital

The Company said that based on the current macroeconomic environment, industry market environment, and comprehensive consideration of the actual situation of the company's current operation and development, in order to further improve the efficiency of the use of raised funds, after careful evaluation, the company intends to terminate the Binhai project, implemented by its subsidiary. In order to maximize the interests of all shareholders, the Company intends to no longer invest in the construction of the "coastal project", and the completed part of the project will be used by the company according to actual needs.

Basic information of the project to be terminated

The project to be terminated is "New production line project of Binhai Base". The project is planned to raise a total of 80 million yuan. The project is implemented by Jiangsu Jiannong Plant Protection Co., LTD., a wholly-owned subsidiary of the company. The construction content is mainly for the production line of newly increased pesticides and other pharmaceutical and pesticide related chemicals, including: The new annual output of 1700 tons of pesticide technicals (triazole technicals, Trifloxystrobin, Lufenuron) and 1300 tons of other pharmaceutical and pesticide related chemicals. As of December 31, 2023, the raised funds investment project has invested 19.951 million yuan, the investment progress is 24.44%, and the raised funds have been used mainly for the purchase of some project-related equipment and warehouse construction.

According to the announcement, Binhai project is located in the coastal industrial park of Jiangsu Binhai Economic Development Zone." After the explosion of Xiangshui Chemical Plant(3.21), the Jiangsu provincial government organized a large-scale safety inspection of chemical enterprises in the province, and put forward higher environmental safety standards for new renovation and expansion projects in the province. Jiangsu Jiannong Plant has been discontinued since March 2019 for safety and environmental protection improvement, and during the suspension of production, the new production line project of Binhai Base has been stopped.

The company said that the Binhai project was implemented based on the feasibility study and analysis report of the fundraising project prepared in 2016. Due to the early feasibility design demonstration of the project, there is a big deviation from the current market situation and the specific operation of the company. If it continues to advance in accordance with the original investment project plan of raised funds, it may face greater uncertainty. Based on the current macroeconomic environment, industry and market environment, and considering the actual situation of the company's current operation and development, the Company intends to terminate the "Binhai Project" and will not continue to invest in the construction of "Binhai Project”.