Kangda New Materials Acquires Stake for $2.2 Million, Causing Market Stir

On November 13, Kangda New Materials released an announcement, It details that its wholly-owned subsidiary Shanghai Kangda Chemical Industry New Materials Co. (hereinafter referred to as "New Materials Co.") is about to sign a "Equity transfer agreement" with Huang. According to the agreement, New Materials Co. plans to acquire 3% of the equity of Fujian Kangda Xinyu New Materials Co., LTD. (hereinafter referred to as "Kangda Xinyu") held by Huang Rongnan at the price of RMB 2.204,800 yuan; At the same time, New Materials Co. will also acquire 10% of the equity of Nanping Tianyu Industry Co., LTD. (hereinafter referred to as "Tianyu Industry") held by Huang Rangnan for RMB 10.533 million. After the completion of the equity transfer, New Materials Co. will fully own 100% of the equity of Kangda Xinyu and Tianyu Industry.

Fujian Kangda Xinyu New Materials Co., Ltd. was founded on March 15, 2019, located in the third phase of Jintang Industrial Park, Shaowu City, Fujian Province, Xingling platform. The company has built a new production line of adhesives with an annual output of 30,000 tons, including functional laminated adhesives 10,000 tons/year, modified elastic resin adhesives 5,000 tons/year, high-performance structural adhesives 5,000 tons/year, functional polyester and reactive hot melt adhesives 5,000 tons/year and special resin intermediates 5,000 tons/year. The total investment of the whole project reached 526.71 million yuan.

On the other hand, Nanping TianyuIndustrial Co., Ltd. was established in 1998, focusing on the production of various green water emulsion industrial and civil adhesive products. The company is China's current "beer trademark adhesive" production of the largest, the most varieties of production, the most advanced process technology of environmental protection adhesive production enterprises. With this equity transfer, Kangda New Materials will further consolidate its position in the adhesives industry and expand its business scope.