Inner Mongolia Boyuan Chemical to increase stake in natural soda ash subsidiary

Inner Mongolia Boyuan Chemical Co., Ltd. is acquiring an additional 10.6464% equity in its subsidiary, Inner Mongolia Boyuan Yingen Mining Co., Ltd. (Yingen Mining), for 2,725,504,200 yuan. This cash acquisition will raise Boyuan Chemical's ownership in Yingen Mining from 60% to 70.6464%. The transaction is a related party transaction and requires approval from the company's shareholders.

Yingen Mining's primary asset is the Alxa Tamusu natural soda ash mining right, covering 42.1 square kilometers, with a mineral reserve of 68.613 million tons. This resource is crucial for its wholly-owned subsidiary, Yingen Chemical, which operates a 7.8 million tons/year soda ash and 800,000 tons/year baking soda project. The acquisition aligns with Boyuan Chemical's strategy to enhance resource control and improve profitability, consolidating its leading position in the soda ash sector.

The acquisition price is based on an appraisal value of 26,300,000,000 yuan for 100% equity of Yingen Mining as of May 31, 2025. This valuation represents a 356.53% increase over Yingen Mining's book value. Yingen Mining's total assets as of May 31, 2025, were 18,013,772,551.18 yuan, with a net profit of 570,572,036.80 yuan for the first five months of 2025.