Nantong Jiangshan Agrochemical & Chemical Co., Ltd answered question about Nantong Jiangshan terminating asset restructuring in (Nantong Jiangshan) Sichuan Leshan Fuhua Tongda Pesticide Technology Co., Ltd (Fuhua Tongda) from Shanghai Stock Exchange on 9 Dec., 2021. Horizontal competition (for glyphosate) problems between two companies and their solutions were mentioned in the answer.
Nantong Jiangshan said that the second major shareholder of the company is Sichuan Leshan Fuhua Crop Protection Technology Investment Co., Ltd that was the shareholder of Fuhua Tongda. Fuhua Tongda mainly specializes in researching, developing, producing and selling glyphosate and other herbicide products and their intermediates and byproducts, overlapping with the main business of Nantong Jiangshan.
As early as 2019, Nantong Jiangshan and Fuhua Tongda entered into the Supplementary Agreement on Asset Entrustment Management Contract to solve the problems in horizontal competition, but the Agreement will be terminated on 15 Jan., 2022.
The reorganization of Nantong Jiangshan and Fuhua Tongda has been terminated, so in order to solve problems in horizontal competition between the two parities, two companies and their shareholders negotiated actively to reach solutions for horizontal competition so as to control and eliminate adverse influences caused by horizontal competition.
At present, preliminary solution was reached, but it will be implemented after going through corresponding legal procedures. Nantong Jiangshan said that solution to the competition is expected to be worked out with extension to the agreement and other proper and feasible plan by 31 March, 2022.
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