It is proposed to purchase two companies for 3.65 billion yuan Follett to enhance the reserves of quartzite ore

Source: Shanghai Securities News

On the evening of October 27, Follett released a major asset purchase plan, and the company intends to purchase 100% of the equity of Dahua Mining and 100% of the equity of Sanli Mining held by Fengsha Group by paying cash and assuming debts. The total value of the underlying assets shall not exceed RMB3.65 billion.

According to the disclosure, Dahua Mining was established in May 2011 with a registered capital of 50 million yuan, the main business is the mining and sales of quartzite ore, the main product is glass quartzite mine, and the net profit attributable to the mother in the first three quarters of 2019, 2020 and 2021 was -20.2742 million yuan, -3.129 million yuan and 21.3518 million yuan, respectively. Sanli Mining was established in January 2003 with a registered capital of 170 million yuan, the main products are glass quartzite mines, and the net profit attributable to the mother in the first three quarters of 2019, 2020 and 2021 was -146.4347 million yuan, 74.5893 million yuan and -3.1818 million yuan, respectively.

The subject of the transaction has abundant reserves of quartzite mineral resources. Dahua Mining Fengyang County Fucheng South Road glass quartzite resource reserves of 20.843 million tons, Sanli Mining Fengyang County Damiao Town glass quartzite mining rights reserves of 37.445 million tons. In terms of mining licenses, Dahua Mining currently has one mining right with a production scale of 500,000 tons/year, and has an annual mining capacity of 2 million tons; Sanli Mining currently has a mining right with a production scale of 1.9 million tons/year.

For the acquisition of the above two companies equity, Follett said that quartz sand is one of the important raw materials for the company's production of photovoltaic glass and float glass, with the continuous expansion of the company's production and marketing scale, the demand for quartz sand is growing, this acquisition will help listed companies to enhance the reserves of glass quartzite mineral resources, ensure the company's sand demand and quality safety, reduce the dependence on purchased quartz sand. After the completion of this transaction, the ability of listed companies to resist risks will be greatly strengthened, and the ability to continue to operate will also be steadily improved.

According to the data, Follett is a leading glass manufacturing enterprise in China, the main business is the research and development, production and sales of photovoltaic glass, float glass, engineering glass and household glass, as well as the mining and sales of glass quartz ore. At present, the company is the second largest enterprise in the global photovoltaic glass industry.

Reporter Li Xingcai Editor Qiu Jiang