--- title: "CHINA RISUN GP plans to sell its equity in Cangzhou Risun Chemical to exchange for shares in TJBE, advancing its layout in the new energy chemical sector" type: "News" locale: "en" url: "https://longbridge.com/en/news/240727339.md" description: "CHINA RISUN GP plans to sign an agreement with TJBE on May 16, 2025, to sell its equity in Cangzhou Risun Chemical Co., Ltd. in exchange for the consideration shares issued by TJBE. The equity ratios involved in this transaction are 80.4765%, 0.0080%, 14.1931%, and 5.3224%. Upon completion of the transaction, Cangzhou Risun Chemical will become a subsidiary of TJBE, and TJBE will also become a subsidiary of Risun Group. The target company mainly engages in the research and development, production, and sales of nylon new materials" datetime: "2025-05-19T00:04:02.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/240727339.md) - [en](https://longbridge.com/en/news/240727339.md) - [zh-HK](https://longbridge.com/zh-HK/news/240727339.md) generator: "portal-rs" --- # CHINA RISUN GP plans to sell its equity in Cangzhou Risun Chemical to exchange for shares in TJBE, advancing its layout in the new energy chemical sector According to the announcement from CHINA RISUN GP (01907), on May 16, 2025, the sellers (Risun Group, Risun Coal Chemical, Shenzhen Capital Group, and Agricultural Bank of China Asset Management) entered into an agreement with TJBE (as the buyer), under which Risun Group (a wholly-owned subsidiary of the company), Risun Coal Chemical (a wholly-owned subsidiary of the company), Shenzhen Capital Group, and Agricultural Bank of China Asset Management conditionally agreed to sell their respective equity interests of 80.4765%, 0.0080%, 14.1931%, and 5.3224% in the target company (Cangzhou Risun Chemical Co., Ltd.) in exchange for the issuance of consideration shares by TJBE. The issue price for each consideration share is RMB 7.55, which may be adjusted due to TJBE's ex-rights or ex-dividend events or fluctuations in the market price of the shares. The number of consideration shares to be issued will be calculated based on the final consideration of the sale divided by the issue price per consideration share. The sellers will receive consideration shares according to their respective shareholding ratios in the target company. The wholly-owned subsidiaries of the company, Risun Group and Risun Coal Chemical, purchasing consideration shares constitute the group’s acquisition of equity in TJBE. After the proposed transaction (including the sale and acquisition matters) is completed, the target company is expected to become a subsidiary of TJBE, and TJBE will become a subsidiary of the company. Therefore, it is expected that the accounts of TJBE and the target company will be consolidated into the company's financial statements. The target company is primarily engaged in the research and development, production, and sales of nylon new materials, mainly including caprolactam, nylon 6, and nylon elastomers. As of the date of this announcement, the target company is held by Risun Group, Risun Coal Chemical, Shenzhen Capital Group, and Agricultural Bank of China Asset Management with respective equity interests of 80.4765%, 0.0080%, 14.1931%, and 5.3224%, making it a non-wholly-owned subsidiary of the company. TJBE is a company listed on the Shenzhen Stock Exchange (stock code: 000695), primarily engaged in the research and development, production, and sales of lithium battery anode materials. TJBE is a subsidiary of Risun Holdings. As of the date of this announcement, aside from Risun Holdings holding approximately 24.85% of the total issued shares of TJBE, no other shareholders hold 10% or more of the total issued shares of TJBE. The actual controller of TJBE is Mr. Yang Xuegang. Starting from March 2024, the State Council, the China Securities Regulatory Commission, and stock exchanges and other regulatory agencies in China have successively introduced a series of policy measures (including "Opinions on Strengthening the Supervision of Listed Companies (Trial)", "Several Opinions on Strengthening Supervision to Prevent Risks and Promote High-Quality Development of Capital Markets", and "Opinions on Deepening the Reform of the Mergers and Acquisitions Market for Listed Companies", etc.). These measures aim to support listed companies in implementing mergers and acquisitions, optimizing resource allocation, and enhancing the investment value of listed companies. In addition, nylon, as an important polymer material, is crucial for the development of China's high-end manufacturing industry. Relevant government departments in China have successively introduced multiple industrial policies to provide a favorable policy environment for the development of the nylon new materials industry, supporting the expansion and advancement of the nylon new materials industry and its industrial chain towards high-end products. Notably, in July 2024, the Ministry of Industry and Information Technology, along with nine other departments, jointly issued the "Implementation Plan for the Innovative Development of the Fine Chemical Industry (2024-2027)", emphasizing the focus on promoting the extension of traditional industries towards high-end development in fine chemicals In response to the above policy guidelines and focusing on enhancing the group's market position and operational capabilities (especially in the new materials sector), the group intends to propose a transaction to integrate the target company (a leading nylon new materials manufacturer) with TJBE (focused on lithium battery anode materials). This strategic initiative aims to leverage the strengths of both parties, promote the group's long-term development and innovation, and align with the group's direction of expanding its business into the high-end new materials sector. The proposed transaction is expected to create synergies for the group in the following aspects: The proposed transaction marks a strategic extension from traditional chemicals to the new energy chemical sector. One of the group's four major business divisions is the production of fine chemical products. The fine chemical products produced by the group mainly include alcohol amine chemical products, carbon material chemical products, and aromatic chemical products. Among them, the products formed from the deep processing of carbon material chemical products will become the raw materials for TJBE's main product, lithium battery anode materials. Through the proposed transaction, the group will be able to establish a complete industrial chain for carbon material chemical products, promoting the development of the group's carbon material business. In addition, the group has a carbon material research team dedicated to studying the processing technology and quality improvement of carbon material chemical products, which can cover the entire carbon material industrial chain, and the proposed transaction can further enhance the efficiency of the group's R&D resource utilization. The target company's main product is nylon new materials, produced from the deep processing of aromatic chemical products. Since the target company's accounts will continue to be consolidated into the group's financial statements after the proposed transaction is completed, the target company's nylon new materials business will continue to be part of the group's fine chemical products production division. As of December 31, 2024, the revenue and pre-tax profit contributed by the target company to the group's fine chemical products production division are approximately 47.1% and 50.1%, respectively. The development of carbon material chemical products and aromatic chemical products (including incorporating TJBE's products into the group's overall product portfolio) will help enhance the group's market share and position in the fine chemicals sector. Nylon is widely used in various components across industries such as automotive and electrical, possessing excellent heat resistance, pressure resistance, and insulation properties, making it suitable for components like engine parts, fuel systems, and electrical connectors. Nylon is a component of aluminum-plastic film, which has been widely used in the outer packaging of sheet batteries (a type of lithium battery). In 2024, the demand for aluminum-plastic film in China's lithium battery industry is expected to reach 420 million square meters. As solid-state battery technology matures, lithium batteries are reducing the use of metal casings, and aluminum-plastic film is expected to have broader prospects in lightweight applications for lithium batteries and new energy vehicles. Additionally, in September 2024, TJBE established a well-equipped electrical laboratory with comprehensive battery manufacturing processes and fault analysis capabilities. TJBE can utilize this laboratory to collaborate with universities to develop polycaprolactam (a type of nylon) materials for lithium battery separators. Currently, the development of button-type batteries at the laboratory scale has been completed, showing significantly improved temperature resistance without compromising electrical performance compared to traditional separators, indicating a broad application prospect for nylon in the lithium battery field. Nylon new materials possess excellent mechanical properties and wear resistance, making them widely used in various industrial fields, including the production of conveyor belts, hoses, seals, gaskets, and bearings. Furthermore, nylon new materials are used to manufacture industrial machinery parts and tools. Given the wide range of applications for nylon new materials, the proposed transaction will facilitate future cooperation between the target company and TJBE in more fields The fine chemical industry traditionally serves manufacturing producers, while manufacturing producers have no direct relationship with consumer goods customers. By integrating the business of TJBE, the group can establish a stronger position in the consumer goods market, especially in the automotive industry. 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