On the evening of September 12, Chinachem technology announced that the company would increase capital to its wholly-owned subsidiary Sinochem (Dongyang) new materials Co., Ltd. (hereinafter referred to as "Chinachem Dongyang") and Dongyang Kaiyang technology innovation and development partnership (limited partnership) (hereinafter referred to as "Dongyang Kaiyang"), and planned to initiate the establishment of a joint venture Dongyang Xinhua Electronic Materials Co., Ltd. with related parties. According to the data, the business scope of the joint venture mainly includes photoresist monomer, photoresist, resin, supporting solvent and other photoresist materials. The specific business scope shall be subject to the industrial and commercial registration.

This is another major measure since the company cut into the field of semiconductor photoresist through Dongyang Kaiyang's investment in Xuzhou Bokang in 2020, which shows the firm confidence of Sinochem technology in developing the field of photoresist to a certain extent.

For a long time, Chinachem technology has been seeking new performance growth points in the field of new materials, especially in the field of chip materials photoresist, while continuing to vigorously develop the airbag sector and consolidate its leading position in the industry.

The announcement shows that the company plans to increase the capital of its wholly-owned subsidiary Sinochem Dongyang with its own funds, with a total amount of 600 million yuan. After the capital increase, the total registered capital of Sinochem Dongyang was changed to RMB 1.5 billion, which is still a wholly-owned subsidiary of the company.

Sinochem Dongyang plans to increase the capital of the partnership Dongyang Kaiyang with its own funds, with a capital increase amount of 450 million yuan. After the capital increase, the total subscribed amount of Dongyang Kaiyang was changed to RMB 1.5 billion, and the subscribed proportion of Sinochem Dongyang was 89.87%, and Dongyang Kaiyang was still included in the scope of the company's consolidated statements.

Dongyang Kaiyang plans to sign a joint venture agreement with Xuzhou Bokang information Chemicals Co., Ltd. (hereinafter referred to as "Xuzhou Bokang"), Dongyang Jintou Holding Group Co., Ltd. (hereinafter referred to as "Dongyang Jintou") and Yuan Jinqing to jointly initiate the establishment of Dongyang Xinhua Electronic Materials Co., Ltd. Among them, Dongyang Kaiyang subscribed a registered capital of 280 million yuan, with a shareholding ratio of 40%. As Yuan Jinqing is an affiliated natural person of the company, this foreign investment constitutes a connected transaction.

Relying on the first mover advantage of Xuzhou Bokang in the industry, Xuzhou Bokang will provide maximum support within its capacity in the aspects of production, technology and market required by the operation of the joint venture, jointly appoint personnel to form a team with the partner, so as to ensure that the plant and production line are completed with quality and quality according to the time agreed by the partner, and ensure that the production line can reach production on schedule. In addition, establish a professional sales team independent of each party and any other third party for the joint venture to be responsible for the sales of the joint venture.

It is worth noting that the agreement requires all parties to ensure the setting of corporate governance, ensure the independent and normal operation of the joint venture, and abide by and continuously improve corporate governance in all major aspects.

In the long run, this cooperation will not only help the company further deepen its development layout in the field of photoresist and seek new profit growth points for the company, but also promote the extension and strengthening of the company's photoresist industry chain, further enrich the corporate governance structure and enhance the market competitiveness of listed companies.

Source: China Securities Network