The M&A drama in the chemical industry is stirring up the A-share market in July.
On one side, state-owned giant Sinochem International is spending 2.11 billion yuan to take over epoxy resin leader Nantong Xingchen. On the other, PVC additive maker Rike Chemical is suspending trading to plan the acquisition of lithium battery electrolyte additive leader Genyuan New Materials, which counts CATL as a major shareholder. One deal resolves related-party competition and fills a supply chain gap; the other crosses into new energy with a target deeply tied to CATL.
Sinochem International's 2.11 Billion Yuan Acquisition Pushes Epoxy Resin Capacity to No. 1 in China
On June 10, Sinochem International officially disclosed its restructuring draft, proposing to acquire 100% of Nantong Xingchen through a share issuance at 3.51 yuan per share, issuing approximately 601 million shares for a total consideration of 2.11 billion yuan.
Before the announcement, Sinochem's stock had already hit the daily limit for two consecutive trading days, closing at 6.55 yuan on June 10. The issue price thus represented a discount of about 46.4% to the closing price, drawing widespread market attention.
On June 29, the acquisition application was formally accepted by the Shanghai Stock Exchange, putting the year‑long process into its final review channel.
Founded in 2000 with registered capital of 800 million yuan, Nantong Xingchen primarily produces epoxy resin, bisphenol A, PPE, PBT, and modified engineering plastics. In 2024, revenue was 4.407 billion yuan with net profit of 38.73 million yuan. By 2025, revenue rose to 4.757 billion yuan and net profit jumped to 256 million yuan, with gross margin improving to 11.52%.
Based on a valuation date of end‑2025, Nantong Xingchen's book net assets stood at 1.451 billion yuan, with an appraised value of 2.11 billion yuan, a 45.43% premium.
Sinochem International reported 2025 revenue of 47.34 billion yuan but a net loss attributable to shareholders of 2.223 billion yuan. Against this earnings pressure, injecting high‑quality assets became the most straightforward move.
After the deal, Sinochem's total epoxy resin capacity will rise from 350,000 to 510,000 tons per year, securing the top spot in China. Nantong Xingchen's 160,000 tons of epoxy capacity will complement Sinochem's existing lines. Meanwhile, Nantong Xingchen's technology and product strengths in PPE, PBT, and other engineering plastics will help Sinochem quickly enter high‑performance, high‑value‑added engineering plastics markets, with new products synergizing with existing ABS and PA lines to offer integrated customer solutions.
Performance commitments add a safety net: BlueStar Group promises that Nantong Xingchen's net profit for 2026‑2029 will be no less than 345 million, 367 million, 388 million, and 341 million yuan respectively. If targets are missed, BlueStar will compensate primarily with shares.
Rike Chemical Suspends Trading for Acquisition, CATL Is the Target's Second Largest Shareholder
On the same day that Sinochem's application was accepted – the evening of June 29 – Rike Chemical dropped its own bombshell.
Rike Chemical announced it is planning to acquire control of Shandong Genyuan New Materials Co., Ltd. through a combination of share issuance and cash, while also raising matching funds. Trading was suspended from June 29, with a suspension period expected not to exceed 10 trading days.
The real highlight of this acquisition is the giant behind the target – CATL.
Founded in 2019, Genyuan New Materials is the world's largest producer of vinylene carbonate (VC), a key lithium‑ion battery electrolyte additive. Its main products include VC and fluoroethylene carbonate (FEC), widely used in new energy vehicle power batteries, energy storage batteries, and consumer electronics batteries.
According to the shareholding structure, the largest shareholder is Tan Yejun with 42.16%, and the second largest is CATL directly holding 13.45%. In addition, two funds co‑sponsored by CATL – Times Mindong and Yibin Chendao – hold 6.28% and 3.72% respectively. CATL and its affiliates together hold nearly 23%.
More importantly, CATL is not only a shareholder but also a key customer. This dual identity deeply ties Genyuan to the global power battery giant's supply chain.
This deep relationship rests on technological moats. In 2021, Genyuan built the world's first 10,000‑ton‑scale VC production line, pioneering by‑product separation technology and ultra‑high purity purification, achieving industrial production of 99.999% ultra‑pure products. Its FEC project filled a domestic gap in continuous reaction and continuous purification technology, breaking a nearly 40‑year monopoly by foreign players. In April 2026, a new 30,000‑ton‑per‑year VC line came online.
Genyuan's customer list covers almost all major domestic new‑energy battery players: CATL, BYD, Sinochem Group, Tianshui Materials, Guoxuan High‑tech, CALB, and others.
For Rike Chemical, however, this is also a high‑stakes bet. Rike is a leading domestic producer of ACR and ACM additives, widely used in PVC profiles, wood‑plastic building materials, wire and cable, and other sectors. But dragged down by weak downstream real estate and home furnishing demand, its profits have been under pressure. From 2022 to 2025, net profit attributable to shareholders was 196 million, 85 million, negative 68.16 million, and negative 29.71 million yuan respectively.
Under pressure in its core business, Rike has frequently diversified – in 2024 it entered the AI computing sector through the acquisition of Carbon Technology, and now it is turning to the lithium battery track. Behind the frequent acquisitions, its debt ratio has soared nearly 34 percentage points over three years.
In the nine trading days before the suspension, Rike Chemical's stock price rose 42.96%, hitting an intraday high of 10.57 yuan on June 26 – a near decade‑high.
Sinochem's acquisition has been accepted by the SSE and awaits final approval. Rike Chemical's cross‑border acquisition is still in the planning stage, and the market is watching to see whether a formal plan will be disclosed within the 10 trading days.
