On May 18, Sinochem International signed an agreement with Nantong Industrial Trade Stated-Owned Assets Management Co., Ltd., stating that Sinochem will acquire 55,440,000 shares from the total 111,744,000 shares of Nantong Jiangshan Agrochemical Chemical Limited Liability Co. (JSAC) owned by the former. Therefore, Sinochem now has 28% of Jiangshan Stock's shares.
Luo Dongjiang, chairman of Sinochem International addressed at the equity transfer signing ceremony. Xu Weihui, general manager of SinoChem singed the agreement with Nantong Industrial Trade Co. on behalf of Sinochem. Present at the ceremony were Ding Dawei, mayor of Nantong city, Cao Nengxin, chairman of Nantong's People's Political Consultative Conference as well as other government officials.
Luo pointed out in his speech that SinoChem hoped to strengthen upstream marketing, improve channel management and upgrade after-sale service on the basis of the distribution of world-class branded pesticide, while at the same time further consolidating, enhancing and extending industry chain value. By combining SinoChem's brand and channel advantages with Jiangshan Stock's technology, production management and scale productivity, it is hoped that the value-added products of Jiangshan Stock will be further reinforced and profitability of Jiangshan Stock upgraded, which helps us become the leading professional and international supplier in the field of pesticide and chemical products. We aim to provide peasants with reliable pesticides and earn good reputation for our employees while at the same time making their life more prosperous. The government will also enjoy amply tax resources. Our society will benefit from a much safer, cleaner and well-protected natural environment.
As one of China's largest pesticide supplier, Jiangshan Stock is an excellent domestic listed company in the field of agrochemicals, which has accumulated rich know-how in the production and R&D of pesticide and boasts strong productivity, advanced technology, scientific management system and well-established work teams. As the major business of Jiangshan Stock is highly synergetic and complementary with that of Sinochem, the close cooperation between the two will greatly stimulate mutual business development, making Jiangshan Stock a pesticide production base with global reputation, and Sinochem a leader in agro-chemical industry.