Shanghai Huayi Group Corp Ltd AAsset swap with controlling shareholder injects profitable Guangxi Energy Chemical stake, fulfilling commitment and resolving competition.

Huayi Group has officially announced an asset swap plan, using its 100% stake in Shanghai Energy Chemical valued at 4.74 billion yuan in exchange for a 51% stake in Guangxi Energy Chemical held by its controlling shareholder Shanghai Huayi, valued at 4.621 billion yuan. The 119 million yuan difference will be paid in cash by Shanghai Huayi. Guangxi Energy Chemical achieved a net profit of 570 million yuan in 2025, while the divested Shanghai Energy Chemical posted a simulated net loss of 307 million yuan in 2025 due to the permanent shutdown of its Wujing production base. The transaction aims to fulfill the controlling shareholder's 2017 commitment to inject the Guangxi Energy Chemical stake into the listed company and resolve horizontal competition issues, with plans to acquire the remaining 49% stake in Guangxi Energy Chemical at an appropriate time. The proposal still requires approval from the company's shareholders' meeting.
Shanghai Huayi Group Corp Ltd AAsset swap with controlling shareholder injects profitable Guangxi Energy Chemical stake, fulfilling commitment and resolving competition.
Company's 51% stake valued at 4.6 billion yuan in asset swap, with net profit of 570 million yuan in 2025.
Divested company posted simulated net loss of 307 million yuan in 2025 due to permanent shutdown of Wujing base.
Controlling shareholder fulfills 2017 commitment by injecting Guangxi Energy Chemical stake, receiving cash difference.