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Lianhetech: two subsidiaries merge

On 11 June 2021, the board of Lianhe Chemical Technology Co., Ltd (hereinafter Lianhetech) reviewed and approved the “Proposal on the Absorption and Merger between Wholly Owned Subsidiaries”, the wholly owned subsidiary Jiangsu Lianhe Chemical Technology Co., Ltd (hereinafter Lianhetech Jiangsu) will absorb and merge all the assets, liabilities, equity and business of Lianhe Chemical Technology (Yancheng) Co., Ltd (hereinafter Lianhetech Yancheng).


Upon the completion of the absorption and merger, Lianhetech Jiansu will maintain its operation, and the legal entity status of Lianhetech Yancheng will be revoked in accordance with the law. Lianhetech Jiansu and Lianhetech Yancheng are located in Chenjiagang Chemical Industry Park, Xiangshui County, Jiangsu province.


According to Lianhetech, the absorption and merger will help integrate resources, reduce management costs, optimize governance structure, improve operational efficiency, and enhance overall business capabilities of the company. Since both Lianhetech Jiangsu and Lianhetech Yancheng are wholly owned subsidiaries of Lianhetech, their financial statements have already been included into the consolidated financial statements of the company. Therefore, the absorption and merger will not affect the normal operation and the financial position of the Company.


According to the announcement, Lianhetech Jiangsu has a registered capital of USD90.5 million, its main business scope is manufacturing of fine chemicals; self-operating and acting as an agent for the import and export business of various commodities and technologies. Lianhetech Yancheng has a registered capital of USD87.6 million, its main business scope is chemical production; import and export of goods; technical services, technical development, technical consulting, technical export, etc.


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