Jiangxi Guotai Group (603977.SH) Acquires 100% Equity of Beikuang Baomao to Stabilize Core Civil Explosives Business

Stock News11-13

Jiangxi Guotai Group Co., Ltd. (603977.SH) announced that it has successfully acquired 100% equity of Beijing Kuangye Baomao Technology Engineering Co., Ltd. (referred to as "Beikuang Baomao" or the "target company") through a public bidding process. The transaction, valued at RMB 110 million, was conducted via the Beijing Equity Exchange, with the seller being Beijing Beikuang Yibo Technology Co., Ltd. ("Beikuang Yibo").

The acquisition will help Jiangxi Guotai Group meet industry planning requirements for on-site mixed explosive production capacity, reinforcing the stability of its core civil explosives business. Beikuang Baomao's operations and core business are primarily located in Jiangxi Province, aligning well with the company's market presence and enhancing synergies in the civil explosives sector.

Leveraging Beikuang Baomao's extensive underground blasting and mining engineering expertise, as well as its technical and talent advantages, the integration is expected to create a "1+1>2" effect. This will strengthen Jiangxi Guotai Group's ability to provide comprehensive solutions for large-scale mining operations.

Additionally, Beikuang Baomao's on-site mixed explosive production capacity and high-level blasting operation qualifications hold significant strategic value for enhancing Jiangxi Guotai Group's production scale, industry position, and integrated blasting service capabilities.

This acquisition aligns with national policies promoting transformation and upgrading in the civil explosives industry, as well as provincial state-owned enterprise reforms emphasizing core business focus and competitiveness enhancement. It also supports industry consolidation efforts to improve concentration and strengthen the civil explosives sector.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment