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CGNNT announces new acquisitions

2017-04-29

CGN Nuclear Technology Development Co (CGNNT, 000881.SZ) announced on April 28 that it bought 40 percent of CGN Jinwo and 49 percent of CGN Toxxon, and will acquire 60 percent of Jiangyin Excen Boton Polymers Co through share acquisition and the issuance of additional shares.

The acquisitions come after the company acquired 100 percent of Hebei Zhonglian Yinshan New Materials Co, a leading company located in Xiongxian county, Xiongan New Area in the province.

CGN Jinwo

Jiangsu CGN Jinwo Electronic Technology Co (CGN Jinwo) completed registration for the ownership transfer of 60 percent of its shares on Jan 12, 2017 and received a new business license. CGNNT plans to acquire the remaining 40 percent of CGN Jinwo through an agreement signed between its subsidiary CGN Dasheng Electron Accelerator Technology Co and CGN Jinwo's shareholders Wu Han and Wu Pin. After the deal is concluded, CGNNT will hold 100 percent of CGN Jinwo shares through CGN Dasheng.

CGN Jinwo is operating well, with its revenue hitting 121.15 million yuan ($17.57 million) in 2016, and a net profit of 22.84 million yuan, outperforming rivals in terms of earnings.

CGN Toxxon

According to a company announcement, CGN Toxxon (Xiamen) New Material Co completed registration for the ownership transfer of 51 percent of its shares on Jan 12, 2017 and received a new business license. CGNNT plans to acquire the remaining 49 percent of CGN Toxxon through an agreement signed between its subsidiary CGN Juner New Materials Co and CGN Toxxon's shareholders, Zhu Yunchao, and Wan Yongjun.

After conclusion of the deal, CGNNT will hold 100 percent of CGN Toxxon shares through CGN Juner.

Jiangyin Excen

According to a company announcement, CGNNT plans to buy 60 percent of Jiangyin Excen Boton Polymers Co through share acquisition and issuance of additional shares. After the deal is concluded, CGNNT's subsidiary CGN Advanced Materials Group Co’s consolidated financial statements will combine those of the targeted company.

The transferor promised that the targeted company's audited net profit attributable to shareholders of the parent company will be no less than 32 million yuan in 2017, no less than 38 million yuan in 2018, and no less than 46 million yuan in 2019, all excluding the company's non-operating income.

The deal conforms to CGNNT's development strategy, and will help accelerate its push for integrated and coordinated development of the polymer modification industry in China, and further sharpen its overall competitive edge as well as that of the targeted companies. Collaboration with the targeted companies will also enrich its capacity in the high and new materials segment and enhance its competitiveness on the market, thus further consolidating its leading position.