Gansu Energy Chemical plans to acquire 100% equity of Jinchang Chemical, held by the controlling shareholder.

Securities Times reporter Huang Xiang

On April 1, Gansu Energy and Chemical (000552) announced that the company is in the process of planning to purchase 100% equity interest in Jinchang Energy and Chemical Development Co., Ltd. held by its controlling shareholder, Gansu Energy and Chemical Investment Group Co., Ltd., through the issuance of shares and payment of cash, while also planning to raise supporting funds. Upon the company’s application, trading in the company’s shares and convertible corporate bonds has been suspended from the opening of trading on April 2, and the trading proposal is expected to be disclosed within no more than 10 trading days.

According to the announcement, the asset in this transaction is 100% equity interest in Jinchang Chemical, and the counterparty is the controlling shareholder of Gansu Energy and Chemical. Therefore, this transaction constitutes a related-party transaction. Based on preliminary calculations, this transaction is expected not to constitute a major asset restructuring, and it will not result in any change in the company’s controlling rights. It also does not constitute a restructuring listing. As of the date of disclosure of the announcement, this transaction is still at the planning stage, and related matters still involve uncertainty.

Gansu Energy and Chemical stated that this transaction is based on the company’s overall development strategy and layout. Relevant matters still need to complete necessary internal decision-making and approval procedures by regulatory authorities. The company will, in accordance with the progress of the matters, strictly fulfill its information disclosure obligations in a timely manner as required by laws and regulations. After completion of this transaction, the target company will become a wholly owned subsidiary of the company. At present, the company has not disclosed details such as the specific pricing for this transaction, the arrangements for payment of the transaction consideration, and the specific purposes of the supporting funds to be raised.

Previously, Gansu Energy and Chemical disclosed its 2025 annual performance forecast, estimating that net profit will be a loss of approximately RMB 190 million, while the same period in 2024 was a profit of RMB 1.213 billion (restated). The year-over-year change turned from profit to loss. Gansu Energy and Chemical stated that the significant decline in performance is due to, on the one hand, factors including the macroeconomic environment, industry cycles, and changes in supply and demand. The company’s core product coal prices have continued to fall, and coal output and sales have decreased year over year, leading to losses in the coal segment. On the other hand, the operating efficiency of its power, chemical, and infrastructure construction business segments has not yet been fully released. Constrained by industry cyclical factors and the market environment, its profit contribution is relatively limited and has not been able to effectively offset the losses in the coal segment.

From an industry perspective, 2026 will be the opening year of the “14th Five-Year Plan to 15th Five-Year Plan” transition, and the domestic coal-to-chemicals industry is entering a critical period for high-quality transformation. It is characterized by strong policy constraints, improving industry concentration, and an accelerated pace of green transformation. At the policy level, with “controlling total volume, improving quality, and strengthening green initiatives” as the core, on one hand, new capacity additions for modern coal-to-chemicals will be strictly controlled, and outdated capacity will be accelerated in clearing; on the other hand, support for clean utilization of coal will be increased to drive the industry toward cleaner and more efficient upgrading.