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According to Sinochem New Network, recently Fujian Yuanli Activated Carbon Co., Ltd. (hereinafter referred to as Yuanli Co.) disclosed a restructuring plan. Under this plan, the company intends to acquire 100% of the shares of Fujian Tongsheng New Materials Technology Co., Ltd. (hereinafter referred to as Tongsheng New Materials) for 470.7 million yuan, in order to enhance its silica (fumed silica) business segment and create synergies across the industrial chain. Following this acquisition, Tongsheng Shares will become a wholly-owned subsidiary of the listed company Yuani Li Shares, which will help reduce the existing related-party transactions between the two parties, avoid potential competition in the same industry, and enhance the independence and standardization of the listed company. It is reported that Yuanli Co., Ltd. and Tongsheng New Materials had regular related-party transactions prior to this transaction. In 2023 and 2024, Yuanli Co., Ltd. sold sodium silicate to Tongsheng New Materials for 5.119 million yuan and 12.3536 million yuan respectively; through integration, 8% to 12% in export costs and taxes can be saved. Tongsheng New Materials focuses on the production of silica via the precipitation method, while Yuanli Co., Ltd. produces silica through its subsidiary Yuanli Silicon Materials using the carbonate method; thus, the two companies are in potential competition in the silica production sector. After integration, this issue will be completely resolved. Yuannli Shares stated that through this acquisition, the company will be able to quickly address its weaknesses in the silica sector, create synergy with its existing businesses in activated carbon and sodium silicate, and establish a balanced development framework based on three key business areas, thereby promoting the company’s high-quality growth.