Luxi Chemical plans to absorb and merge Luxi Group

On November 23, Luxi Chemical announced that it intends to absorb and merge
Luxi Group by issuing shares to all shareholders of Luxi Group, Sinochem Liaocheng, Caixin Holdings and Aggregation Investment.
After consultation between all parties, the final transaction price of 100% equity of Luxi Group is 6.
395 billion yuan
.

After the completion of this transaction, Luxi Chemical will be the surviving party and will inherit and undertake all assets, liabilities, personnel, business, contracts and all other rights and obligations of Luxi Group; Luxi Group will cancel its legal personality, and its 492 million shares of Luxi Chemical will be cancelled; Sinochem Investment, Sinochem Liaocheng, Caixin Holdings and Aggregate Investment will directly hold the shares
of the Company acquired through the subscription of the underlying assets.

According to the transaction plan, after the equity change, Sinochem Investment directly holds 32.
92% of the shares of Luxi Chemical and indirectly holds 4.
16%
of the shares of Luxi Chemical through Sinochem Liaocheng.
The controlling shareholder and actual controller of Luxi Chemical remain unchanged
.

Luxi Chemical said that the merger is an important measure to implement the "Guiding Opinions of the CPC Central Committee and the State Council on Deepening the Reform of State-owned Enterprises", further deepen the reform of mixed ownership of listed companies, optimize the structural adjustment of the layout of state-owned assets, and improve the corporate governance structure, which will further improve the allocation and operational efficiency of state-owned capital, enhance the vitality of the state-owned economy, enhance the overall competitiveness of the surviving companies, and realize the preservation and appreciation
of state-owned assets.