EXPL plans to acquire 51% of Songguang Mining Explosives for 316 million yuan to increase production capacity

According to the Zhitong Finance APP, EXPL (002096.SZ) announced that the company has signed a "Share Transfer Agreement regarding Henan Songguang Explosive Materials Co., Ltd." with Henan Songguang Enterprise Management Consulting Center (Limited Partnership). The company intends to acquire 51% of the shares of Henan Songguang Explosive Materials Co., Ltd. ("Songguang Explosive") from the transferor in cash. Both parties agreed that the final transaction price for 100% of the shares of the target company is 620 million yuan, meaning the transaction price for 51% of the shares is 316 million yuan. Upon completion of the transaction, Songguang Explosive will become a subsidiary controlled by the company. The announcement shows that Songguang Explosive mainly engages in the production and sales of industrial explosives, with leading products including gel emulsified explosives, powder emulsified explosives, expanded ammonium nitrate explosives, and modified ammonium oil explosives. The sales area is primarily concentrated in Henan Province, and the company is actively expanding into provincial and municipal markets. As of the date of this announcement, Songguang Explosive has obtained an industrial explosive production capacity license approved by the Ministry of Industry and Information Technology for 56,000 tons per year. With the approval of the Safety Division of the Ministry of Industry and Information Technology, Songguang Explosive's production capacity has been adjusted, receiving a capacity reward of 4,000 tons for mixed explosives, and after the new license is issued, the production capacity will be adjusted to 60,000 tons. The announcement states that after the project is implemented, the company will be able to obtain core resources for explosive production capacity in Henan Province, improve the integrated business of explosive production, sales, and blasting in the Henan region, and enhance the core competitiveness of general contracting for mining construction