On January 3, Xinjiang Xuefeng Sci-Tech (Group) Co.Ltd(603227) (603227) announced that the company planned to issue shares and pay cash to purchase part or all of the equity of Xinjiang Yuxiang Huyang Chemical Co., Ltd. (hereinafter referred to as “Yuxiang Huyang”) held by shareholders such as Xinjiang agriculture and animal husbandry investment (Group) Co., Ltd. (hereinafter referred to as “agriculture and animal husbandry investment group”), and issue shares to qualified specific investors to raise matching funds. The relevant scheme remains to be further discussed and determined. The counterparty of this transaction, agriculture and animal husbandry investment group, is the controlling shareholder of the company, so this transaction constitutes a related party transaction. The trading of the company’s shares has been suspended since the opening of the market on Tuesday, January 4, 2022. It is expected that the suspension will not exceed 10 trading days.
According to the disclosed information, the main business products of Populus euphratica mainly include ammonium nitrate, nitro compound fertilizer and melamine, which is one of the raw material supply channels of Xinjiang Xuefeng Sci-Tech (Group) Co.Ltd(603227) . On December 31, 2021, the company signed the relevant intention agreement on this transaction with the agriculture and animal husbandry investment group, which agreed that the company would purchase 39.5% equity of Populus euphratica held by it from the agriculture and animal husbandry investment group in the form of issuing shares and paying cash.
According to the data, at the end of 2020, the unaudited total assets of Populus euphratica were 3760316500 yuan, the net assets were 1935282000 yuan, the operating revenue was 1303216200 yuan and the net profit was 94.1177 million yuan in 2020. It is one of the main suppliers of Xinjiang Xuefeng Sci-Tech (Group) Co.Ltd(603227) , with good income and profit in recent years and strong performance ability.
According to the prediction of the company at the beginning of 2021, the related party transactions with Populus euphratica in 2021 will be about 100.5 million yuan, including 70 million yuan for goods and 30.5 million yuan for labor. After the successful completion of this acquisition, the amount of Xinjiang Xuefeng Sci-Tech (Group) Co.Ltd(603227) related party transactions can also be effectively reduced. (Qin Wen)
(Securities Times)
