Hailir acquires shares in prothioconazole manufacturer

On July 13, 2022, China's Hailir Pesticides and Chemicals announced the progress of its acquisition in cash of the 26% stakes in Shaanxi Jinxinyi Chemical Technology Co., Ltd, where Hailir has planned to use its own fund to purchase 26% stakes in Shaanxi Jinxinyi as held by Guo Qiangjun, for RMB64.835 million.

As of December 31, 2021, the audited total assets of Shaanxi Jinxinyi were RMB96.89 million, and net assets were RMB58.3988 million. Its operating income in 2021 was RMB240.9276 million, and its net profit was RMB33.249 million.

Shaanxi Jinxinyi is primarily engaged in the production and marketing of 1,4-Butanediol, γ-Butyrolactone, 2-Acetylbutyrolactone and N-Methylpyrrolidone. Among them, 2-Acetylbutyrolactone is a crucial intermediate of the fungicide prothioconazole technical, the company’s dominant product. 

Upon completion of the transaction, Hailir’s supply chain further consolidates, enhancing the company’s overall control of the upstream materials' supply and product quality.