Sichuan Qiaoyuan Gas (301286.SZ) signed an equity acquisition intent agreement for the indirect acquisition of shares of Hongchen Chemical.

Sichuan Qiaoyuan Gas(301286.SZ) Announcement: The 5th board of directors of the company held its 12th meeting on January 22, 2025, and approved the proposal for the company to indirectly acquire the controlling stake of Deyang Hongchen Chemical Co., Ltd. ("Hongchen Chemical") through a cash acquisition. The company has reached a preliminary agreement with the shareholders of Chengdu Xingjiu Xing Trading Co., Ltd. (holding 70% equity of Hongchen Chemical, referred to as "Xingjiu Xing Trading") Su Shijun and the shareholders of Chengdu Haoyu Cheng Trading Co., Ltd. (holding 30% equity of Hongchen Chemical, referred to as "Haoyu Cheng Trading") Zhang Gan and Ying Lan, and on the same day, they jointly signed the "Equity Acquisition Intention Agreement." After preliminary negotiations, the overall valuation of the target companies (i.e. Hongchen Chemical, Xingjiu Xing Trading and Haoyu Cheng Trading) does not exceed RMB 200 million. Specific acquisition proportions, transaction prices, etc. will be further negotiated and determined by both parties after the company and its hired intermediary institutions conduct due diligence, audits, etc. It is reported that Hongchen Chemical is a company specialized in carbon dioxide business, and has obtained quality management system certification and food safety management system certification. Hongchen Chemical was established in April 2009, mainly producing food-grade liquid carbon dioxide, industrial-grade liquid carbon dioxide, high-purity carbon dioxide, and food-grade dry ice. Currently, it produces approximately 120,000 tons/year of liquid carbon dioxide and approximately 30,000 tons/year of food-grade dry ice. The project adopts advanced domestic carbon dioxide production technology, and the product quality meets the national standards GB1886.228-2016 and GB/T6052-2011. The company intends to acquire the controlling stake of Hongchen Chemical through this transaction, further expanding the company's product layout in the carbon dioxide field, improving the diversification level of the company's products, thereby positively impacting the company's profitability, performance growth, etc., and benefiting the further expansion and enhancement of the company's business, in line with the company's strategic development goals and the interests of the company and all shareholders.