Ye's Chemical Group is intended to sell 68%of the development of Qianxin Chemical Development, with a price of 2.295 billion yuan

On July 26, 2022, Ye's Chemical Group (00408.HK), a listed company of Hong Kong stocks, resumed the trading high and opened high, and the market fell more than 9%.

On the news, the company announced yesterday that on July 15, 2022, the buyer PAGAC Heisenberg Holding II Limited, the seller Ye's Hengchang (Group) Co., Ltd. Development Co., Ltd. entered into this agreement, and the seller has the conditions to agree to sell sales shares (equivalent to 68%of the target company) at the cost of RMB 2.295 billion (about HK $ 2.688 billion).

According to the data, the target company is the indirect subsidiary of Ye's Chemical Group, and the target group is mainly engaged in the solvent business. The target company Yu Qianxin Chemical directly owns about 38.88%of the equity and Ye Shi Industry, an affiliated company with 75%of its subsidiary, indirectly owns about 48.17%of the equity. Therefore, the target company Yu Qianxin Chemical has 75%of the actual rights and the group will sell 51%of the actual rights of Qianxin Chemical through sale.

After the sale is completed, the target company will no longer be an subsidiary of the company. Therefore, the financial performance of the target group will no longer be comprehensively represented in the group's comprehensive financial statements.

Ye's chemical industry stated that the group is mainly engaged in the manufacturing and trade of solvent, coatings, ink and lubricating oil, and property investment. Sale matters are used to establish a new solvent plant; strategic cooperation with buyers and Taimeng; and financing for the sustainable development of the solvent business.

The Group's unexpectedly recorded income from the selling matters was approximately HK $ 1.188 billion. The company intends to use the net amount to be used as a future investment and reserves, repay bank loans, and supplement general operating funds.

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