China Sanjiang terminates management agreement with Grand Novel

China Sanjiang Fine Chemicals Company Limited (HKEX:2198) has terminated its management agreement with Grand Novel, as announced on January 23, 2025, effective April 9, 2025. The company stated the termination was mutually agreed upon after serving a notice to Grand Novel. The decision was driven by uncertainties surrounding the logistics of procuring ethane, propane, butane, methanol and silver, stemming from tariffs imposed by the USA on April 2, 2025, and subsequent counter-measures from the PRC. The company confirmed that no payments have been made to Grand Novel, and no outstanding amounts are owed under the terminated agreement. The board believes the termination is in the best interests of the company and its shareholders.