On
2 Jan., 2024, Jiangsu Lanfeng Biochemical Co., Ltd. (Jiangsu Lanfeng)
publicised the progress of selling 100% shares of Ningxia Lanfeng Fine
Chemical Co., Ltd. (Ningxia Lanfeng), a wholly-owned subsidiary of the
company. Here is the time line of the sale as per the announcement:
On
25 Dec., 2023, Jiangsu Lanfeng reviewed and passed the Proposal on
Selling 100% Equity of Wholly-owned Subsidiaries, agreeing to make a
full sale of Ningxia Lanfeng at USD2.9 million (RMB20.5 million) to
Hebei Wanglian Agricultural Technology Co., Ltd. (Hebei Wanglian), a
national designated pesticide producer founded on 27 March, 2012 with a
registered capital of USD423,908 (RMB3 million) and located in
Provincial Industrial Cluster in Xinle City, Hebei Province.
On
29 Dec., 2023, Ningxia Lanfeng had finished the registration change
with all equities completely transferred to Hebei Wanglian, which means
Jiangsu Lanfeng will no longer hold shares of Ningxia Lanfeng ever
since.
Previously
on 22 Sept., 2023, Jiangsu Lanfeng announced to increase capital of
Ningxia Lanfeng from USD81.96 million (RMB580 million) to USD84.78
million (RMB600 million). However, due to industrial adjustment, the
company started to shed part low-efficient agrochemical assets,
including Ningxia Lanfeng. Ningxia Nanfeng boasted 14 products in early
establishment, whereas affected by factors such as production process
maturity, market demand, environmental protection policy and production
cost, the company only remains production of carbendazim TC,
2-nitroaniline and o-phenylenediamine with that of the others stopped.
On
the same day, Jiangsu Lanfeng injected USD13.42 million (RMB95 million)
to Xuzhou Lanfeng Biochemical Technology Co., Ltd. (Xuzhou Lanfeng),
meanwhile accepting 40% equities held by Jiangsu Lanfeng Import &
Export Co., Ltd., which made Xuzhou Lanfeng its wholly-owned subsidiary
after the transfer. In addition, Jiangsu Lanfeng acquired 51% equities
of Anhui Xuhe New Energy Technology Co., Ltd. to enter the photovoltaic
industry. The selling of Ningxia Lanfeng will also help the company to
further concentrate resource on the main business and accelerate
shifting toward and upgrade of new energy industry.
There
are other pesticide enterprises began setting foot in new industries as
well, in response to a generally sluggish market of pesticides. On 4
Aug. 2023, Limin Chemical Co., Ltd. struck a strategic cooperation
agreement with Jiangxi Jinhui Lithium Material Co., Ltd., laying focus
on new energy battery electrolyte projects, in a bid to raise
competitiveness in the new energy material industry; on 4 Dec., 2023,
Hunan Haili High-Tech Industry Group Co., Ltd., the controlling company
of Hunan Haili Chemical Co., Ltd., achieved ground-breaking progress in
vanadium industry, signing an equity transfer and capital increase
contract with Hunan Yinfeng New Energy Co., Ltd., Guzhang Xiangfeng
Construction Material Engineering Co., Ltd. and Guzhang Hongyuan
Vanadium Industry Co., Ltd. (Hongyuan Vanadium), which includes
purchasing 56.7% shares of Hongyuan Vanadium at USD15.26 million (RMB108
million).
Enterprises
like Jiangsu Lanfeng that adjusted asset and business structure are not
in minority. In March of 2023, Jiangsu Flag Chemical Industry Co., Ltd.
released an announcement on subsidiary equity transfer within the
company, transferring all shares of wholly-owned subsidiary Jiangsu Suke
Agricultural Chemical Co., Ltd. to its holding subsidiary Jiangsu
Zhongqi Crop Protection Co., Ltd. at USD1.64 million (RMB11.6 million);
on 18 Sept., 2023, Jiangsu Huifeng Agrochemical Co., Ltd. declared that
to better deal with the debt issue of Jiangsu Jialong Chemical Co., Ltd.
(Jiangsu Jialong), its wholly-owned subsidiary, it proposed to apply
for bankruptcy liquidation of Jiangsu Jialong as a creditor, since the
latter had inked a purchase and reserve agreement with Jiangsu
Lianyungang Chemical Industrial Park.