Tongde Chemical takeover of the Yellow River chemical civil explosion assets

Tongde Chemical disclosed today, the company intends to acquire Daning Yellow River Chemical Limited liability company owned by the civil explosion-related assets, Tongde Chemical holding Daning Yellow River chemical 10.04% stake, therefore, the acquisition constitutes a related transaction. Data show that the Yellow River chemical registered capital of 25.3 million yuan, the main business for the production of civil demolition equipment, sales, currently has an annual output of 6000 tons of modified ammonium oil explosive production line, an annual output of 12000 tons of expanded ammonium nitrate explosive production line.　　As of December 31, 2009, the Yellow River Chemical industry has not audited total assets of 64.8753 million yuan, the total liabilities of 40.783 million yuan, the owner's equity of 24.0924 million yuan, 2009 to achieve operating income of 19.4285 million yuan, net profit-3.6924 million yuan.　　At present, the Yellow River Chemical Industry audit, assessment work has not been completed, pending the completion of the audit, evaluation, the two sides to negotiate an asset acquisition agreement. The company said that according to the 2009 National civil Explosive Equipment industry working Conference deployment, one of the key jobs of the civil explosion industry is "further deepen the reorganization of the industry, promote the Cross-border reorganization of the civil explosion enterprises, promote the good assets to concentrate continuously to the dominant enterprises, develop a group of large companies and large enterprise groups which The purpose of this 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.