Acquisition of 39% of Luxi group's equity and expansion of Sinochem Group's chem

On October 30, Sinochem Group announced that Sinochem Investment Development Co., Ltd. (hereinafter referred to as "Sinochem investment") under Sinochem Group acquired 39% equity of Luxi Group Co., Ltd. (hereinafter referred to as "Luxi group"), and SINOCHEM investment became the second largest shareholder of Luxi group. According to Sinochem news, on October 29, Sinochem investment and the state owned assets supervision and Administration Commission of Liaocheng Municipal People's government, the controlling shareholder of Luxi group, signed the strategic cooperation agreement. The two sides will give full play to their respective advantages, integrate their resources, comprehensively strengthen cooperation, and establish long-term and stable strategic relations and cooperation mechanisms. Liaocheng state owned assets supervision and Administration Commission agreed in principle to carry out strategic restructuring of Luxi group, so as to make Sinochem investment become the largest shareholder of Luxi group and obtain the controlling right. The cooperation matters need further consultation and formal agreement between the two parties, and the necessary government approval and other procedures shall be performed in accordance with the law. According to the official website, Luxi group is a state-owned holding enterprise group of Liaocheng City. In 1998, Luxi Chemical Group Co., Ltd. was listed on the Shenzhen Stock Exchange. The group has a total assets of 30.1 billion yuan and more than 11000 employees.

It has industries such as basic chemical industry, new chemical materials, chemical fertilizer, design and development, chemical equipment and engineering, new energy equipment, international trade, etc. Founded in 1950, Sinochem Group Co., Ltd. is an important state-owned backbone enterprise under the supervision of the state owned assets supervision and Administration Commission of the State Council. It is a leading integrated operator of petroleum and chemical industry, an integrated operator of agricultural inputs (seeds, pesticides, fertilizers) and modern agricultural services, holding shares of Sinochem International (SH, 600500) Sinochem chemical fertilizer (HK, 00297) and China Jinmao (HK, 00817), etc Many listed companies have nearly 60000 employees worldwide. The reporter of Beijing News noted that chemical industry is one of the main businesses of Sinochem Group. At present, Sinochem Group has established strong competitive advantages in the fields of fluorine chemical industry, intermediates and new materials, agricultural chemicals, polymer additives, natural rubber, petrochemical raw material marketing, medicine and health, and has developed into a leading comprehensive service provider of chemical products in China. According to Sinochem Group, Sinochem's acquisition of part of the equity of Luxi group is conducive to giving full play to the advantages of all parties, strengthening cooperation in new chemical materials and high-end chemical equipment industry, and further promoting the high-quality development of Luxi group.