Yanzhou coal industry to integrate coal chemical business

category:Finance
 Yanzhou coal industry to integrate coal chemical business


The acquired assets include 49.315% equity of Shaanxi future energy Chemical Co., Ltd. (hereinafter referred to as future energy), 100% equity of Yankuang Yulin Fine Chemical Co., Ltd. (hereinafter referred to as fine chemical), 100% equity of Yankuang Lunan Chemical Co., Ltd. (hereinafter referred to as Lunan Chemical), and 100% equity of Yankuang Jining Chemical Equipment Co., Ltd. (hereinafter referred to as chemical equipment).

In addition, it also includes 100% equity of Yankuang coal chemical supply and marketing company, 99% equity of Shandong Yankuang Jisan Power Co., Ltd. (hereinafter referred to as Jisan power), as well as relevant assets of Yankuang Group Information Center.

The above seven companies are all enterprises of Yankuang Group.

Yanzhou coal industry is the largest coal producer in East China and a large coal export enterprise in China. It is mainly engaged in coal production, washing and processing, coal sales and railway transportation, coal chemical industry, electric power and other businesses.

Yankuang Group is a large-scale state-owned enterprise, whose main business is coal mining and processing and trade. It also involves coal chemical industry, mechanical and electrical equipment manufacturing, electrolytic aluminum, material sales, engineering construction and other industries.

Yanzhou Mining Group directly and indirectly holds 56.01% shares of Yanzhou coal industry, and the actual controller is the state owned assets supervision and Administration Commission of the peoples Government of Shandong Province.

The acquisition is the largest cash acquisition in Chinas coal industry in recent years, reflecting Yankuangs accelerated pace of securitizing assets related to its coal main business, the China Securities Journal quoted industry insiders as saying.

After the acquisition, the asset securitization rate of Yankuang Group reached about 90%.

Among the seven target companies mentioned above, the transaction price of 49.315% equity of future energy was the highest, reaching 12.218 billion yuan, followed by Lunan Chemical 100% equity, with the transaction price of 5.542 billion yuan. Both companies are mainly engaged in coal chemical business.

In 2019, the future energy industry will achieve a revenue of 8.752 billion yuan and a net profit of 2.245 billion yuan; Lunan Chemical Industry will achieve a revenue of 6.31 billion yuan and a net profit of 388 million yuan.

On the same day, the board of directors of Yanzhou coal also deliberated and passed the proposal to carry out domestic and foreign financing business, and approved the company or its holding subsidiary to raise no more than 30 billion yuan at home and abroad.

Nearly half a year, Yanzhou coal industry for the main business assets trading action.

On September 4, Yanzhou Coal announced plans to invest 3.96 billion yuan to acquire 51% of Inner Mongolia mining group.

On September 8, S & P issued a report saying that the acquisition of Inner Mongolia mining group by Yanzhou coal industry will lead to the weakening of credit indicators of Yanzhou Coal and its parent company Yankuang Group.

According to the S & P report, the high leverage of Inner Mongolia mining group will bring heavy debt burden to Yanzhou coal industry. However, Yankuang Group has relatively large debt volume and sufficient rating buffer, which can help it digest the huge debt of Inner Mongolia mining group.

In March this year, Yanzhou Coal announced the sale of 100% equity of Yanmei international trading company and Yanmei Singapores two wholly-owned subsidiaries. These two companies are engaged in non coal trading business, and have low correlation with the main business. In 2018, the total revenue of the two companies was 52.02 billion yuan, accounting for 54% of the companys other business income. According to the announcement, as of the end of June this year, the total assets of Yankuang Group were 333.133 billion yuan. In the first half of this year, Yankuang Group achieved revenue of 150.81 billion yuan and net profit of 3.817 billion yuan. Yanzhou Coal Industry Report showed that in the first half of the year, its revenue was 109.613 billion yuan, a year-on-year increase of 3.43%; the net profit was 4.6 billion yuan, a year-on-year decrease of 14.2%. By the end of September 30, Yanzhou Coal closed at 9.26 yuan / share, down 3.14%. Source: interface news editor: Yang Bin_ NF4368

In March this year, Yanzhou Coal announced the sale of 100% equity of Yanmei international trading company and Yanmei Singapores two wholly-owned subsidiaries.

These two companies are engaged in non coal trading business, and have low correlation with the main business. In 2018, the total revenue of the two companies was 52.02 billion yuan, accounting for 54% of the companys other business income.

Yanzhou Coal Industry Report showed that in the first half of the year, its revenue was 109.613 billion yuan, a year-on-year increase of 3.43%; the net profit was 4.6 billion yuan, a year-on-year decrease of 14.2%.

By the end of September 30, Yanzhou Coal closed at 9.26 yuan / share, down 3.14%.