Tongde Chemical intended to buy civil explosion assets

Tongde Chemical (002360) bulletin, the company intends to acquire Daning Yellow River Chemical Co., Ltd. of the civil explosion-related assets.　　At present, the company employs the securities and futures industry qualified audit and asset evaluation agencies to audit and evaluate the underlying assets, this work has not been completed, pending the completion of the audit, evaluation work, the two sides to negotiate an asset acquisition agreement, and according to the procedure submitted to the Company's relevant decision-making bodies for consideration and approval　　According to the announcement, at present Tongde Chemical holding Daning Yellow River chemical 10.04% of the equity, for its corporate shareholders, and the company director Mr Cheung Sheng, Jing in each other as a director.　　As of December 31, 2009, the Yellow River chemical assets amounted to 64.8753 million yuan, the total liabilities of 40.783 million yuan, the owner's equity of 24.0924 million yuan, the Yellow River chemical 2009 to achieve operating income of 19.4285 million yuan, net profit-3.6924 million yuan. The company said that the purpose of the acquisition is to speed up industrial integration, expand production and operation scale and market share, improve market share and comprehensive competitiveness, enhance the company's profitability and sustainable management capacity.　　The Company believes that the acquisition is conducive to the company in the field of civil explosion bigger and stronger, after the completion of the acquisition of assets will be expanded, the company's comprehensive strength, core competitiveness and risk-resistant ability will be further improved, conducive to enhancing Tongde chemical sustainable profitability. In addition, the company also announced that the use of excess funds to set up a wholly-owned subsidiary of 5 million yuan-Shanxi Tongde chemical civil Demolition Equipment Management Co., Ltd., mainly engaged in the purchase and sale of civilian explosives (for Civil Explosives Sales License license scope, only foreign trade exports), ammonium nitrate ( Only the use of the company's production base and foreign trade exports, chemical raw materials (except hazardous chemicals), mechanical and electrical products (excluding cars), packaging materials.