Sep. 18, 2012
Chinese company Chongqing Huapont Pharm. Co., Ltd (“Huapont Pharm”) entered into a State-Owned Stock Transfer Agreement with Hangzhou Industrial Assets Management Investment Group Co., Ltd in early September, where Huapont Pharm acquired 58.26% stake in Hangzhou Qingfeng Agro-Chemical Co., Ltd (Qingfeng Agro-Chemical) at a cost of Yuan 58.08 million.
The acquisition will enable Huapont Pharm to utilize the resources of Qingfeng Agro-Chemical and move directly into the agro-chemical formulation production and marketing sector, which will further diversify its product range and pave the way for cooperation with world class agro-chemical industry players.
Qingfeng Agro-Chemical has a registered capital of Yuan 54.68 million, mainly covering production of pesticide technical and formulation such as alachlor, acetochlor, pretilachlor, butachlor, metolachlor, propisochlor and prochloraz; its brand names include “Qingfeng”, “Caoshate” and “Caoshaan”, etc. Up until 31 December 2011, total assets of Qingfeng Agro-Chemical reached Yuan 555 million; in 2011 sales income reached Yuan 365 million at a loss of Yuan 51 million.
Following the acquisition of Qingfeng Agro-Chemical, Huapont Pharm is prepared to carry out technical renovation, process upgrade and marketing consolidation to cease the loss situation step by step and endeavor to achieve profitability in 2013.
Apart from Chinese domestic market, Huapont Pharm is meanwhile growing its presence in overseas market and plans to invest in an enterprise in North America in the near future.
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