Anhui Jiangnan Chemical strengthens position with acquisition, extended non-competition

Anhui Jiangnan Chemical Industry plans to acquire 100% equity in Xi'an Qinghua Civil Explosives Co., Ltd. for 64,490.46 million yuan in cash. This move aims to resolve horizontal competition issues with its controlling shareholder, North Special Energy Group Co., Ltd. The transaction is based on a valuation report and includes a performance commitment from North Special Energy Group. Anhui Jiangnan Chemical Industry also intends to participate in a public tender for the transfer of civil explosive assets and a leasing project from Fushun Mining Group Co., Ltd.

In a related development, Anhui Jiangnan Chemical Industry’s actual controller, China North Industries Group Corporation Limited, has extended its commitment to avoid horizontal competition for an additional five years. The deadline moves from December 25, 2025, to December 25, 2030, to ensure a mature and stable integration plan. The company also re-appointed Zhonghuan Certified Public Accountants (Special General Partnership) as its auditor for the 2025 financial year, with an estimated audit fee of 2.70 million yuan.