Nanjing Chemical Fibre (600889.SH) plans to purchase 100% of the shares of Nanjing Yigong. Trading will resume on November 18th.

Nanjing Chemical Fibre (600889.SH) announced that the company plans to purchase 100% of Nanjing Craft by asset replacement, issuance of shares, and cash payment, and will issue shares to specific investors to raise matching funds. The company's stock will resume trading from November 18, 2024 (Monday). Prior to this transaction, the main business of the listed company was the production and sales of viscose staple fibers, PET structural core materials, and urban ecological water supply services. Through this restructuring, the listed company plans to divest all original business assets and liabilities, and inject 100% of Nanjing Craft shares. After the restructuring is completed, the main business of the listed company will change to R&D, production, and sales of rolling functional components. Rolling functional components are widely used in the transmission systems of various types of mechanical equipment, key general basic components for high-end equipment manufacturing industries such as CNC machine tools, photovoltaic and semiconductor equipment, injection molding and die-casting, and smart manufacturing. They are the basic core components for achieving independent control and domestic substitution of high-end equipment. The rolling functional components industry aligns with the national scientific and technological innovation strategy and industrial policies, belonging to the core basic component business areas that are specifically supported and encouraged by the state. This transaction will help the listed company transition and upgrade towards new quality production forces, improve the quality of the listed company's assets, enhance the company's profitability and sustainable operational capabilities, thereby increasing the company's value, and benefiting the interests of the company's small and medium-sized shareholders.