Lanhua Sci-Tech reports mixed Q3 results, proposes governance changes

Shanxi Lanhua Sci-Tech Venture reported mixed performance for the first three quarters of 2025. Coal production and sales increased by 8.73% to 11.41 million tonnes and 1.81% to 9.03 million tonnes respectively, but revenue fell by 21.93% to CNY 4,387.77 million, and gross profit by 44.75% to CNY 1,351.88 million. Urea production and sales decreased, with revenue down 37.73% to CNY 866.91 million and gross profit falling 71.77% to CNY 73.65 million.

The company also announced significant corporate governance changes, including the proposal to abolish the supervisory board, with its functions to be assumed by the board's audit committee. This restructuring necessitates amendments to the company's articles of association and other governance policies, aligning with updated regulations. These changes and the proposed acquisition of 60% equity in Lan Ke Company for CNY 5.04 million, alongside the appointment of Bi Kun as general manager, will be subject to shareholder approval at an extraordinary general meeting on November 21, 2025.

The board also approved the absorption and merger of Lanhua Coal Chemical Company and Lanhua Gas Company to optimize land resources and support the development of the coal chemical industry. Additionally, the board approved a loan of CNY 35 million to Danfeng Chemical for operational expenses and the nomination of Li Fengliang to the audit committee.