Tongde Chemical to buy the Yellow River chemical civil explosion assets

In order to accelerate industrial integration, Tongde Chemical (002360) to acquire Daning Yellow River Chemical Co., Ltd. owned civil explosion-related assets. At present, the acquisition of the target assets audit, evaluation work has not been completed, pending the completion of the relevant work, the two sides will negotiate to determine the acquisition price and signed an acquisition agreement.　　Prior to the acquisition of Tongde Chemical holding 10.04% of the Yellow River Chemical shares, the acquisition constitutes a related transaction. The Yellow River Chemical main civilian demolition equipment production and sales, currently has an annual output of 6000 tons of modified ammonium oil explosive production line, an annual output of 12,000 tons of puffed ammonium explosive production line. As of December 31, 2009, the Yellow River chemical assets total 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 Industry 2009 to realize the operating income of 19.4285 million yuan, net profit-3.6924 million yuan.　　Tongde Chemical said that the acquisition will help expand the company's operating scale and market share, improve market share and comprehensive competitiveness. Last year, the National civil explosive equipment industry working Conference deployment of the civil explosion industry, one of the key work is "further deepen the reorganization of the industry, promote the Cross-border reorganization of civil explosion enterprises, promote good assets to the dominant enterprises, the development of a group of major industry development has a significant role in large companies, conglomerates, Accelerate the formation of a group of independent intellectual Property rights and well-known brands of the dominant enterprise. With the support of relevant national policies, Tongde chemical decided to further strengthen the integration of the existing assets of the Yellow River Chemical industry, the acquisition of its own civil explosion assets.　　At the same time, the company has disclosed in the prospectus of the Yellow River Chemical stock purchase plan to stop execution. In addition, Tongde chemical also intends to raise funds 5 million yuan, investment to set up a "Shanxi Tongde chemical civil Demolition Equipment Management Co., Ltd." wholly-owned subsidiary, in order to export the civil explosion products, expand the company's sales market of explosive products.