On September 1, Cangzhou Dahua Co., Ltd. announced that China National Chemical Industry and Chemical Corporation received a 2% stake in Cangzhou Dahua Group Co., Ltd., a company held by the State-owned Assets Supervision and Administration Commission of Zhangzhou City, through the free transfer of state-owned shares. After the transfer was completed, Zhongnonghua Chemical holds a 51% stake in Cangzhou Dahua Group and becomes the controlling shareholder of Cangzhou Dahua Group.
As Cangzhou Dahua Group directly holds 145 million shares (accounting for 55.92% of the total share capital) of Cangzhou Dahua Co., Ltd., and is the controlling shareholder of Cangzhou Dahua, Zhongnonghua indirectly controls 55.92% of Cangzhou Dahua through Cangzhou Dahua Group. The shares became the actual controller of Chuzhou Dahua and constituted an indirect acquisition of Cangzhou Dahua in accordance with relevant regulations.
On August 30th, Zhongnonghua and Zhangzhou State-owned Assets Supervision and Administration Commission signed the "Ganzhou Dahua Group's State-owned Equity Equity Gratuitation Agreement". The Zhuozhou City SASAC transferred its holdings to Zhongnonghua for free on July 31st. Chenzhou Dahua Group has a 2% stake. After the equity transfer, the Zhuozhou City SASAC still holds a 49% stake in Chenzhou Dahua Group.
Zhongnonghua Chemical is a wholly-owned subsidiary of China National Chemical Corporation. It is currently the leading agricultural chemicals manufacturer in China. It is mainly engaged in the production, operation, research and development and sales of pesticides, fertilizers, and related intermediates. Cangzhou Dahua Group is a large-scale comprehensive chemical enterprise group with chemical fertilizer and TDI as its leading products. It currently has an annual production capacity of 550,000 tons of urea, 300,000 tons of large-particle urea, and 50,000 tons of ammonium nitrate.