Hunan Tianrun Chemical to buy into tobacco firm in Hunan
China – Hunan Tianrun Chemical Industry Development<002113>, which recently resumed trading after a 20-day suspension, has announced that it plans to pay more than RMB 80.18 million in cash for a 64.74% stake in a tobacco firm based in Hunan Province, sources reported.
However, the Shenzhen-listed enterprise is still waiting for approval from the State-owned Assets Supervision and Administration Commission of the Hunan provincial government, the China Securities Regulatory Commission and a chemical firm that holds a 17.26% stake in the tobacco firm.
If the reorganization is successful, Hunan Tianrun Chemical will reap RMB 635 million in core business revenue this year, and net profit will reach RMB 16.06 million.
In the first half of this year, the firm suffered net losses of RMB 9.8 million, and loss per share was RMB 0.08, according to a statement filed with the Shenzhen Stock Exchange.
The tobacco firm, whose net asset value was RMB 118.1 million as of Aug. 31, reaped RMB 186.26 million in core business revenue in the first half. The firm’s gross profits were RMB 20.84 million, and net profit was RMB 9.43 million.
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Tags: Tobacco
