Aug. 13, 2021
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In a board meeting held on August 4, 2021, Nutrichem decided to execute an Equity Repurchase Agreement with the share-participated Lianyungang Shijie Agrochemical Co., Ltd.
According to the announcement, Shijie Agrochemical intends to buy back Nutrichem’s 20% stakes for RMB 137.5 million. Upon completion of the transaction, Nutrichem will no longer hold shares in Shijie Agrochemical.
Shijie Agrochemical’s business mainly covers sales of chemical products (excluding licensed chemicals). As of April 30, 2021, Shijie Agrochemical’s consolidated financial statements after auditing reveal assets of RMB 530 million, with liabilities of RMB 159 million, accounts receivable of RMB 99.52 million and net assets of RMB 371 million. Its operating income from January to April 2021 was RMB 163 million, with a net profit of RMB 3.88 million.
Nutrichem announced that the transaction is conducive to the company’s centralization of resources to focus on its major business, which will help in the recovery of its long-term equity investment as well as optimization of the asset structure of the company.