Qilu Pharmaceutical restructuring Huaxing Chemical

On the morning of March 10, China’s Qilu Pharmaceutical held a meeting for the restructuring of Huaxing Chemical. Jiang Yuguo, vice president of Qilu Pharmaceutical, attended the meeting virtually, whilst Wang Hongyan, vice president of Qilu Pharmaceutical attended the meeting on the site. All senior executives and employee representatives of Huaxing Chemical attended the meeting. 

The meeting confirmed the appointment of senior management of Huaxing Chemical. This is an important milestone of Qilu Pharmaceutical's restructuring of Huaxing Chemical. 

On August 13, 2021, the People's Court of Anhui Province undertook the bankruptcy petition from Anhui Huaxing Chemical Co., Ltd. On September 10, 2021, solicitation of strategic investors was announced. Eventually, Qilu Pharmaceutical succeeded in participation in restructuring of Huaxing Chemical. Huilong Co., Ltd also responded to the solicitation, but without success. 

Prior to the restructuring, Hong Kong Stock Market-listed Shanghai Dasheng Agricultural Fintech Co., Ltd was the controlling shareholder of Huaxing Chemical. In February 2022, Shanghai Dasheng Agricultural Fintech Co., Ltd disclosed part of the information in AN announcement of the bankruptcy restructuring of Anhui Huaxing Chemical Co., Ltd. According to the announcement, the restructuring includeD a proposed introduction of Qilu Pharmaceutical (Inner Mongolia) Co., Ltd as an intended investor in the bankruptcy restructuring to invest an amount up to Yuan651 million in Huaxing Chemical for Huaxing Chemical to repay its debts.

Founded in 1984, Anhui Huaxing Chemical Co., Ltd is a high-tech enterprise engaged in research, development, production, sales and trading of basic chemical and fine chemical products. According to the Top 100 of 2021 National Pesticide Sales publicized in May 2021, Huaxing Chemical's sales was Yuan1.441 billion.

The restructuring of Huaxing Chemical is an important strategic decision of Qilu Pharmaceutical Group. The restructuring will greatly facilitate the crop production business of Qilu Pharmaceutical Group and enhance the strategic deployment of the group's three major business sectors which will include pesticide technicals and formulations. The restructuring is expected to promote a rapid development of the green pesticide chain of Huaxing Chemical; and will greatly increase the added value of the products of Huaxing Chemical as well as to support the technical innovation and market expansion of the company.