Wanhua Industrial Group


Wanhua Industrial Group Co., Ltd. is a Chinese holding company. It was the parent company of Wanhua Chemical Group and BorsodChem until 2018. Yantai Municipal People's Government, via Yantai Guofeng, still owned 39.497% stake of the company as of 2017. The government also sold 25% stake of the company to a consortium of Pemex and Deutsche Bank in 2007.

Wanhua Industrial Group Co., Ltd.
Formerly烟台万华华信合成革有限公司
TypeMixed government-private ownership
IndustryHolding company
Founded29 October 2001 (2001-10-29) in Yantai
Founder
Headquarters
Yantai
,
China
Area served
China
Total assetsRMB6.774 billion (2018)
Total equityRMB4.930 billion (2018)
OwnerYantai Guofeng (39.497%)
Subsidiaries
BorsodChem(former)
Wanhua Chemical Group(former)
Chinese name
Simplified Chinese万华实业集团有限公司
Hanyu PinyinWànhuá shíyè jítuán yǒuxiàn gōngsī
Literal meaningWanhua Industrial Group, limited company
former name
Simplified Chinese烟台万华华信合成革有限公司
Hanyu PinyinYāntái wànhuá huáxìn héchénggé yǒuxiàn gōngsī
Literal meaningYantai Wanhua Hua[rong]–Cin[da] synthetic leather limited company
Websitewanhuagroup.com
Footnotes / references
source of data: Yantai's SASAC[1]

History


Predecessors

Yantai synthetic leather factory

The predecessor of Wanhua Group Corporation, was Yantai synthetic leather factory (Chinese: 烟台合成革总厂 or Chinese: 烟台合成革厂).[2] The plan to built the factory was approved by the State Development Planning Commission [zh] in 1978.[3] The construction started in 1980 and completed in 1983.[4] The manufacturing technology was imported from Japan (from Nippon Polyurethane Industry [ja] according to C&EN[5]) and was the first synthetic polyurethane leather factory of China.[6]

In 1988, the ownership of the factory was transferred from the Ministry of Light Industry of the People's Republic of China [zh] to the Yantai Municipal People's Government.[2]

Wanhua Group Corporation

In 1995, the factory was re-incorporated as a limited company as 烟台万华合成革集团有限公司,[7] or in short, Wanhua Group Corporation (Chinese: 万华集团公司).[2]

In 1998, a subsidiary Yantai Wanhua Polyurethane (now Wanhua Chemical Group) was formed. The subsidiary owned the methylene diphenyl diisocyanate production line of the factory.[2] However, Wanhua Group Corporation retained several production line such as the supply chain of liquid chlorine, sodium hydroxide, pure water, steam vapour and electricity.[2] The subsidiary became a listed company in January 2001.

In October 2001, Wanhua Group Corporation formed another subsidiary Wanhua Industrial Group (see section below). In 2015, 39.497% shares of Wanhua Industrial Group was transferred from Wanhua Group Corporation to its parent State-owned Assets Supervision and Administration Commission (SASAC) of the Yantai Municipal People's Government, making Wanhua Group Corporation and Wanhua Industrial Group were sister companies.[8]

As of 2019, Wanhua Group is a live company. It owned the shares of Yantai Wanhua Hospital as well as other assets.[9]

Wanhua Industrial Group

Foundation and privatization

In October 2001, Wanhua Group Corporation formed another subsidiary Wanhua Industrial Group (founded as 烟台万华华信合成革有限公司, known as 烟台万华实业集团有限公司 since 2008) as part of a debt-to-equity swap. Central Government owned bad banks managers China Huarong (Chinese: 华融; pinyin: Huáróng) and China Cinda (Chinese: 信达; pinyin: Xìndá) were the minority shareholders.[10] Cinda[11] and Huarong[7] later sold the shares of Wanhua Industrial Group.

According to the company itself, Wanhua Group Corporation injected all the assets to Wanhua Industrial Group at the time of the debt-to-equity swap, which including the shares of Yantai Wanhua Polyurethane, Yantai Huali (Chinese: 烟台华力热电股份有限公司; pinyin: Yāntái huálì rèdiàn gǔfèn yǒuxiàn gōngsī), Wanhua Microfiber (Chinese: 万华超纤), etc.[7]

Wanhua Industrial Group was the direct parent company of the listed company Yantai Wanhua Polyurethane since 2001 and effective in March 2003.[12] Wanhua Industrial Group still owned 47.92% shares of the listed company as of 31 December 2017, before another company shake up in January 2018.[13]

Yantai Huali was a combined steam and electric power supplier of the listed company.[14]

In 2007, the Yantai city-owned Wanhua Group Corporation sold a further 25% stake of Wanhua Industrial Group to a consortium of Pemex, Deutsche Bank and one other investor.[10][15] After the deal, as of 2007, Wanhua Group Corporation owned 50.50% shares of Wanhua Industrial Group, the aforementioned consortium, via a BVI company Prime Partner International Limited, owned 25%,[15][16] and the rest (24.58%) was owned by Yantai Huali.[15]

By 2005, Yantai Huali was significantly (37.60%) owned by Wanhua Industrial Group. It was followed by Wanhua Group Corporation for 31.94% shares as well as employee stock ownership for the rest of the shares.[7]:19 But since December 2006, Yantai Huali was majority owned by the managers of the listed company.[11] Yantai Huali acquired 15.04% shares of Wanhua Industrial Group from Huarong in 2005[7] and 9.54% shares from Cinda in 2006.[11] The change in ownership of Yantai Huali, as well as acquiring the shares of Wanhua Industrial Group, was considered as an indirect employee stock ownership of the listed company.[11][17]

In 2013, Wanhua Industrial Group recapitalized another RMB4 billion and diluting the stake of the existing shareholders.[18]

BorsodChem acquisition

Wanhua Industrial Group was interested to buy Hungarian company BorsodChem in the late 2000s. By 2009, Wanhua Industrial Group already acquired about two-thirds of mezzanine capital of the BorsodChem.[19]

In 2011, Wanhua Industrial Group formally acquired BorsodChem.[20][21] It was the biggest Chinese outbound investment deal in Hungary.[22] The buyout of BorsodChem from private equity firms Permira and Vienna Capital Partners came at a financially bleak time for BorsodChem and allowed the company to avoid laying off its 2700 employees.[23][24] The parent companies of the listed company, also hired the listed company to manage BorsodChem from 2011[25] to circa 2019.

split and reverse IPO

In 2017, the State-owned Assets Supervision and Administration Commission (SASAC) of the Yantai Municipal People's Government, transferred 39.497% stake of Wanhua Industrial Group to another city government-owned company Yantai Guofeng (Chinese: 烟台国丰投资控股有限公司; pinyin: Yāntái guófēng tóuzī kònggǔ yǒuxiàn gōngsī).[13] Yantai's SASAC acquired the aforementioned stake from its subsidiary Wanhua Group Corporation in 2015. (see above section)

In January 2018 Wanhua Industrial Group was split into two companies: the surviving Wanhua Industrial Group as well as 烟台万华化工有限公司 (pinyin: Yāntái wànhuá huàgōng; lit. 'Wanhua chemical industry, limited company'). The latter became the new largest shareholder of the listed company instead.[26] The latter also owned the assets that directly related to polyurethane production,[1] including BorsodChem. However, the latter also reverse merged with the listed company in February 2019.[27]

As of 31 December 2018, after the split, Wanhua Industrial Group had a net assets of RMB4.930 billion.[1] It owned 33.07% shares of Wanhua EnergySave Science and Technical Group[1][28] (Chinese: 万华节能科技集团 or known as WanhuaEnergySav Science Technical Group[29][30]) The shares of that company were formerly traded in Chinese OTC system National Equities Exchange and Quotations as NEEQ:838261 until June 2018.[31]

The company also owned 15.56% shares of Wanhua Microfiber as of 2018.[1]

Further reading


  • Yang Bo (January 2015). 建设烟台合成革厂. 熔炉—从学徒工到共和国部长 (memoir) (in Chinese). 中国轻工业出版社 [China Light Industry Press]. ISBN 9787501999170.

References


  1. 万华实业集团有限公司 (in Chinese). SASAC of Yantai Government. 20 August 2019. Retrieved 15 January 2020.
  2. 烟台万华聚氨酯股份有限公司招股说明书概要 (prospectus) (in Chinese). Yantai Wanhua Polyurethane. 13 December 2000. Retrieved 15 January 2020 via jrj.com.cn.
  3. 发展历程 > 1978年-1998年 (in Chinese). Wanhua Chemical Group. Retrieved 15 January 2020.
  4. 大事记. 烟台市志 (in Chinese). 1994.
  5. Tremblay, Jean-François (23 May 2016). "C&EN profiles Wanhua Chemical, a Chinese firm that made it big in urethanes". Chemical & Engineering News. Vol. 94 no. 21. pp. 24–26. Retrieved 15 January 2020.
  6. 轻工业. 烟台市志 (in Chinese). 1994.
  7. 2006 年度短期融资券募集说明书 (in Chinese). Wanhua Industrial Group. April 2006. Retrieved 16 January 2020 via chinabond.com.cn.
  8. 万华化学集团股份有限公司关于控股股东国有股权无偿划转的公告 (PDF) (Press release) (in Chinese). Wanhua Chemical Group. 9 November 2015. Retrieved 15 January 2020.
  9. 烟台万华合成革集团有限公司. SASAC of Yantai Government. 20 August 2019. Retrieved 15 January 2020.
  10. 万华实业集团有限公司跟踪评级分析报告 (PDF) (Press release) (in Chinese). China Lianhe Credit Rating. 22 July 2008. Retrieved 15 January 2020.
  11. 烟台万华(600309)控股股东股权发生变更. Shanghai Securities News (in Chinese). 23 December 2006. Retrieved 16 January 2020 via stcn.com.
  12. 股本变动及股东情况. 2002年年度报告 [2002 Annual Report] (PDF) (Report) (in Chinese). Wanhua Chemical Group. 2003. p. 7. Retrieved 16 January 2020 via Shanghai Stock Exchange website.
  13. 普通股股份变动及股东情况. 2017年年度报告 [2017 Annual Report] (PDF) (Report) (in Chinese). Wanhua Chemical Group. 2018. p. 46. Retrieved 15 January 2020 via Shanghai Stock Exchange website.
  14. 重要事项. 2006年年度报告 [2006 Annual Report] (PDF) (Report) (in Chinese). Wanhua Chemical Group. 2007. p. 23. Retrieved 16 January 2020 via Shanghai Stock Exchange website.
  15. 墨西哥石油、德意志银行入股烟台万华. 第一财经日报 (in Chinese). 3 March 2007. Retrieved 15 January 2020 via Sohu news portal.
  16. 关于第一大股东改制的提示性公告 (PDF) (Press release). Wanhua Chemical Group. 26 January 2007. Retrieved 16 January 2020 via Shanghai Stock Exchange website.
  17. 鲁岩 (24 September 2008). Written at Beijing. 烟台万华管理层财富路径调查. 21世纪经济报道 [21st Century Business Herald] (in Chinese). Guangzhou. Retrieved 16 January 2020 via Sohu news portal.
  18. 张卓冉 (9 April 2013). 万华实业获40亿元增资. 山东商报 (in Chinese). Retrieved 16 January 2020 via ifeng.com.
  19. Tucker, Sundeep; Arnold, Martin (9 September 2009). Written at Hong Kong and London. "Wanhua in talks with Permira over Borsodchem". Financial Times. London. Retrieved 16 January 2020.
  20. Richburg, Keith B. (29 February 2012). Written at Beijing. "China wary of helping Europe weather its debt crisis". The Washington Post. Washington, D.C. Retrieved 15 January 2020. The biggest deals included China’s Wanhua industrial group taking full control of the Hungarian chemical maker BorsodChem for $1.6 billion
  21. Bryant, Chris (2 February 2011). Written at Budapest. "Wanhua takes full control of Borsodchem". Financial Times. London. Retrieved 16 January 2020. China's Wanhua Industrial Group has gained full control of Borsodchem, the Hungarian chemicals manufacturer, in a €1.2bn ($1.66bn) deal
  22. 万华实业集团完成对匈牙利BorsodChem公司全面收购 (in Chinese). Economic and Commercial Counselor's Office of the Embassy of the People's Republic of China in Hungary. 1 February 2011. Retrieved 15 January 2020.
  23. "Wanhua to the rescue of BorsodChem". Chemical Business NewsBase. 20 February 2012.
  24. Gal, Janos (20 February 2012). "To the Rescue". ICIS Chemical Business. Archived from the original on 22 February 2012.
  25. 烟台万华:万华实业收购BorsodChem公司96%的股权. Guoyuan Securities. 15 February 2011. Retrieved 15 January 2020 via qq.com.
  26. 普通股股份变动及股东情况. 2018年年度报告 [2018 Annual Report] (PDF) (Report) (in Chinese). Wanhua Chemical Group. 23 April 2019. p. 46. Retrieved 15 January 2020 via Shanghai Stock Exchange website.
  27. 万华化学集团股份有限公司以新增股份吸收合并烟台万华化工有限公司实施结果暨股份变动公告 (PDF) (Press release) (in Chinese). Wanhua Chemical Group. 14 February 2019. Retrieved 15 January 2020.
  28. "About Wanhua". wanhuamp.com. Wanhua Group. Archived from the original on 27 July 2018. Retrieved 4 February 2021.
  29. http://www.neeq.com.cn/disclosure/2017/2017-03-30/1490860249_653213.pdf
  30. http://www.neeq.com.cn/disclosure/2018/2018-04-17/1523959466_817586.pdf
  31. http://www.neeq.com.cn/uploads/1/file/public/201806/20180628183659_yyq7fyjxjr.pdf