Shenma Spends 952 Million Yuan to Raise Stake in Nylon Chemical to 72 Percent Amid Profit Pressure

On August 1, Shenma Co. (600810.SH) announced a plan to acquire a 10.27% stake in Nylon Chemical from Jinshi Fund for 952 million yuan in cash, raising its ownership in the key subsidiary from 61.79% to 72.06%. After the deal, Jinshi Fund’s stake will drop from 15.66% to 5.39%, and Nylon Chemical will remain under Shenma’s control.

Valued at 9.274 billion yuan as of December 31, 2024, Nylon Chemical’s equity has seen a 7.08% appreciation from its audited book value. The acquisition, fully funded by Shenma’s own capital, is expected to increase the company’s earnings share and boost overall competitiveness as it battles shrinking profits.

Nylon Chemical, established in 1996 with a 4.384 billion yuan registered capital, specializes in nylon 66 salt—an essential upstream ingredient for nylon fiber and engineering plastics. As of March 31, 2025, its total assets reached 12.679 billion yuan with a 35.68% asset-liability ratio. In Q1 2025, the company reported 1.586 billion yuan in revenue and a net profit of 16.66 million yuan (unaudited), following 6.875 billion yuan in revenue and 221 million yuan net profit for 2024 (audited).

Shenma’s move comes amid sharp earnings declines: Net profit plunged 77.57% in 2024, and the company posted its first negative non-GAAP results in 12 years, with further losses expected for H1 2025. The increased stake in Nylon Chemical is seen as a strategy to reinforce its profit base and supply chain integration during tough times.