On August 8, Shanxi Lanhua Sci-Tech Venture Co., Ltd. (hereinafter referred to as “Lanhua Sci-Tech” or the “Company”) issued an announcement stating that the Company will acquire a 62% equity stake in Shandong Jiaxiang Yilong Port Co., Ltd. (hereinafter referred to as “Jiaxiang Port” or the “Target Company”) held by Shandong Xuhong Industrial Investment Co., Ltd. for RMB 148.8 million in cash.
This asset acquisition does not constitute a connected transaction nor a major asset restructuring as defined by the “Administrative Measures for Major Asset Restructuring of Listed Companies.”
According to a report by Cailian Press, Miao Wei, the Company Secretary of Lanhua Sci-Tech, stated that the Company has numerous downstream customers along the canal. Acquiring Jiaxiang Port will not only allow the Company to control a key node for coal inland transportation and transshipment but also help reduce coal transportation costs.
As the first comprehensive port in Shandong Province to achieve rail-water intermodal transport, Jiaxiang Port holds significant strategic advantages. Its dedicated railway line directly connects to Jiaxiang Station, linking the Xinhe-Yanzhou-Rizhao coal transport line and seamlessly integrating with the three major trunk railways: Beijing-Kowloon, Beijing-Guangzhou, and Beijing-Shanghai. At the same time, leveraging the golden waterway of the Beijing-Hangzhou Grand Canal, it provides direct access to the core energy consumption markets of the Yangtze River Delta. This unique “railway + canal” intermodal system establishes an efficient logistics channel for Lanhua Sci-Tech’s coal, forming the “Houyue Line – Xinhe-Yanzhou-Rizhao Line – Beijing-Hangzhou Grand Canal” route, occupying a critical node in China’s “north-to-south and west-to-east coal transport” network.
Additionally, Jiaxiang Port’s hinterland hosts over six coking enterprises, with abundant inland coal resources. As a logistics hub for supply and demand, the port offers multiple resources and transportation methods to both suppliers and buyers, meeting the needs of customers in East China, particularly excelling in metallurgy and coking operations.
The announcement reveals that Jiaxiang Port has an annual designed throughput of 10.6 million tons, with a dedicated railway line handling capacity of approximately 6 million tons per year. It features nine 1,000-ton berths, a total shoreline length of 2,050 meters, and comprehensive supporting facilities within the port area. The dedicated railway line spans 7.6 kilometers, and the port yard covers an area of 358,000 square meters. The port’s annual designed throughput is 10.6 million tons, with a dedicated railway line handling capacity of about 6 million tons per year. It has nine 1,000-ton berths, a total shoreline length of 2,050 meters, and well-equipped supporting facilities. The dedicated railway line spans 7.6 kilometers, and the port yard covers 358,000 square meters.
As of December 31, 2024, Jiaxiang Port’s total assets amounted to RMB 701 million, total liabilities to RMB 198 million, and net assets to RMB 503 million. It reported operating revenue of RMB 89.6721 million and a net loss of RMB -17.7399 million. By February 28, 2025, Jiaxiang Port’s total assets had decreased to RMB 476 million, total liabilities increased to RMB 225 million, and net assets stood at RMB 250 million. From January to February 2025, operating revenue was RMB 21.507 million, with a net loss of RMB 253 million.
As the acquirer, Lanhua Sci-Tech was established in December 1998 and is a listed company under Lanhua Group. It is currently the only A-share listed company in Shanxi controlled by local state-owned assets. With coal, fertilizers, and chemicals as its core industries, its main coal production mines are located in the heart of the Qinshui Coalfield, the largest anthracite base in China, boasting abundant resource reserves. Leveraging its coal resources, the Company actively develops modern coal chemical industries. Lanhua Sci-Tech’s 2024 annual report shows that the Company achieved revenue of RMB 11.70 billion and a net profit attributable to shareholders of RMB 718 million. Three of its top five customers are located downstream of the Beijing-Hangzhou Grand Canal: Xuzhou Guoyun Port Co., Ltd., Ningbo Baosheng Energy Co., Ltd., and Shanghai Kejiang Economic and Trade Co., Ltd.
Lanhua Sci-Tech stated that by acquiring Jiaxiang Yilong Port Co., Ltd., the Company can swiftly enter the inland waterway shipping and related logistics business sectors. Utilizing the existing port facilities, transportation network, and customer resources, as well as leveraging the acquired company’s market foundation and industry influence, the Company aims to further expand its share in the coal and other bulk commodity logistics and transportation markets, strengthening its market voice in the logistics industry.
At the Jiaxiang Port unveiling ceremony held by Lanhua Group on the morning of the 8th, Li Xiaoming, Chairman of Lanhua Group, stated that looking ahead, Lanhua will use its controlling stake in Jiaxiang Port as a starting point to enter new sectors, foster new quality productive forces, and form a diversified industrial cluster integrating mining, railways, ports, and shipping. This will enhance the Company’s market influence in bulk commodity logistics and transportation, create an inland golden waterway for coal outbound transport, continuously upgrade infrastructure, and improve the port’s intelligent and green development levels. The goal is to create a thriving scene of “north-to-south and west-to-east coal transport,” with countless vessels and goods flowing freely, contributing to the high-quality economic development of the Jiaxiang region.
