Shenma Industrial says controlling shareholder plans to boost holdings of company A-shares by 105-300 mln yuan

Shenma Industrial Co., Ltd. (600810.SH) announced that its controlling shareholder, Pingmei Shenma Group, plans to increase its holdings in the company’s A-shares with a planned investment of between RMB 105 million and RMB 300 million. This move aligns with the company’s broader strategy to strengthen its core nylon business and optimize its asset structure.

In recent months, Shenma Industrial has been actively reshaping its portfolio through a combination of strategic acquisitions and divestitures. For instance, the company recently acquired the remaining 45.13% stake in Henan Shenma Poly Materials Co., Ltd. for RMB 237 million, bringing its total ownership to 100%. This acquisition is expected to enhance the company’s control over its core nylon 6 chip production, which has demonstrated strong performance and profitability in recent years.

Simultaneously, Shenma Industrial has been divesting non-core and loss-making assets, such as its 49% stake in Henan Shouheng New Materials Co., Ltd., which was sold for RMB 41.854 million. These actions reflect the company’s commitment to focusing on its core nylon-related operations and improving overall asset quality.

The recent buyback of 2.11% of its shares for RMB 199.92 million further underscores the company’s confidence in its long-term value. With these strategic moves, Shenma Industrial aims to enhance operational efficiency, reduce financial risks, and strengthen its competitive position in the nylon industry.