Luxi Chemical has been incorporated into Sinochem

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Luxi Chemical incorporated into Sinochem’s portfolio Author/Source: Sinochem News Network Date: 2021-09-08 Clicks: 28 On September 3, the State-owned Assets Supervision and Administration Commission of the State Council transferred all the shares of Sinochem Group Co., Ltd. (abbreviated as Sinochem Group) and China National Chemical Corporation (abbreviated as CNCC) to Sinochem Holding Co., Ltd. (abbreviated as Sinochem) on a gratuitous basis. As a result, Sinochem acquired indirectly 48.93% of the shares in Luxi Chemical Group Co., Ltd., which are held by the holding companies under Sinochem Group. 　　Prior to this acquisition, Sinochem did not hold any shares in the company ； Sinochem Group holds approximately 932 million shares of the company through its subsidiary LuXi Group Co., Ltd. and Sinochem Investment, accounting for 48.93% of the company’s total share capital. The company’s controlling shareholder is Sinochem Investment, while the actual controller is the State-owned Assets Supervision and Administration Commission of the State Council. 　　It is understood that on the evening of August 30, other related listed companies such as Sinochem International, Fengshen Co., Ltd., Andisu, and Quanyin High-Tech also issued announcements stating that they had received news from Sinochem regarding the initiation of procedures for a joint restructuring, which indicates that the restructuring process is accelerating. 　　There had been rumors even before this acquisition of Luxi Chemical. As one of the leading comprehensive chemical enterprises in China, Lushi Chemical has gradually developed industrial chains in fluorosilicon chemistry, coal chemistry, salt chemistry, and new chemical materials. In recent years, focusing on the chemical industry, efforts have been made to develop new chemical materials and high-end chemical industries. The semi-annual report for 2021 shows that Luxi Chemical achieved operating revenue of 14.471 billion yuan in the first half of the year, a year-on-year increase of 94.73% ； The net profit attributable to the parent company was 2.632 billion yuan, representing a year-on-year increase of 1,064.17%. 　　Regarding the acquisition of Luxi Chemical, Sinochem stated that Luxi Chemical is performing well, and there will be no changes to its core business at present. In addition, Sinochem, the world’s largest integrated chemical company with total assets of 1.4 trillion yuan and annual revenue exceeding 1 trillion yuan, has now brought Luxi Chemical under its umbrella. Upon this announcement, industry experts believe that Luxi will receive more financial support and resources, enabling it to develop into a world-class industrial park for new chemical materials.