China Jushi and Sinoma Technology, whose parent company since the merger is China National Building Material Group (CNBM Group) each issued announcements to push forward the resolution of the competition due to overlapping activities between the two companies in the glass fiber industry through asset reorganization.
Specifically, Sinoma Technology intends to purchase all or part of the equity held by existing shareholders of Lianyungang Zhongfu Lianzhong Composite Materials. According to a report, Zhongfu Lianzhong is mainly engaged in the production and sales of wind turbine blades. The wind power blade industry is also one of the leading industries of Sinoma Technology. The company’s semi-annual report shows that Sinoma’s wind power blade business achieved revenue of 3.27 billion yuan, accounting for about 43% of the company’s total revenue and achieved a net profit of 390 million yuan.
At the same time, Sinoma intends to sell all or part of the equity of Taishan Fiberglass held by the company to China Jushi. Taishan Fiberglass is ranked among the top three in China and the top five in the global glass fiber industry. According to the 2020 semi-annual report of Sinoma Technology, during the reporting period, Taishan Fiberglass sold 456,000 tons of glass fiber and products, achieving a revenue of 2.96 billion yuan and a net profit of 480 million yuan.
In addition, China Jushi notably intends to purchase part or all of the equity of Zhejiang Hengshi, which is also a company engaged in the production and sales of fiberglass products. If this reorganization is successfully completed, China Jushi’s scale in the industry will take a new step forward.
Companies: China Jushi