Wanhua Chemical made a net profit of 6.621 billion yuan in the first quarter to absorb and merge Zhuoneng lithium battery.

On the evening of April 9, Wanhua Chemical (600309) released its quarterly report for 2021, with operating income of 31.312 billion yuan, an increase of 104.08% over the same period last year; net profit belonging to shareholders of listed companies was 6.621 billion yuan, up 380.82% from the same period last year; and basic earnings per share was 2.11 yuan.

Battery Network noted that on March 15, Wanhua Chemical announced that in order to optimize the management structure and improve the efficiency of management and control, from the overall planning and strategic point of view of the group company, it is proposed to absorb and merge the wholly-owned subsidiary Yantai Zhuoneng Lithium Battery Co., Ltd. ("Zhuoneng Lithium Battery").

Data show that Wanhua Chemical and Zhuoneng Lithium Battery former shareholder Yantai State-owned assets Management Co., Ltd. signed an equity transfer agreement in April 2020 to acquire its 100% stake in Zhuoneng Lithium Battery, with a purchase consideration of about 102 million yuan.

In terms of financial situation, on December 31, 2019, Zhuoneng lithium battery total assets of 292 million yuan, net assets of 73.3257 million yuan; in 2019, Zhuoneng lithium battery operating income of 19.4355 million yuan, net profit-34.7031 million yuan. On December 31, 2020, the total assets of Zhuoneng lithium battery were 168 million yuan and the net assets were 63.8579 million yuan. In 2020, the operating income of Zhuoneng lithium battery was 6.5184 million yuan and the net profit was-9.4677 million yuan.

Wanhua Chemical said that the company merged Zhuoneng lithium battery through absorption and merger. after the completion of the absorption and merger, the independent legal personality of Zhuoneng lithium battery will be cancelled, and all assets, liabilities and other rights and obligations of Zhuoneng lithium battery will be undertaken by the company.