DeHeng Advised Yuntianhua on Obtaining CSRC Approval

for Non-Public Offering of Shares

2020-11-19

On November 2, 2020, the application of Yunnan Yuntianhua Co., Ltd. ("Yuntianhua," stock code: 600096) for non-public offering of shares was unconditionally approved by the Public Offering Review Committee of China Securities Regulatory Commission (CSRC). The approval (No.3069 of 2020) has recently been received.

Yuntianhua was listed on the Shanghai Stock Exchange on July 9, 1997. It is a comprehensive large-scale state-controlled company with core resource advantages. It is an excellent manufacturer of phosphate fertilizer, nitrogen fertilizer and co-formaldehyde with focus on the phosphorus industry. Its main business covers fertilizer and modern agriculture, phosphate mining, fine chemicals, commerce and logistics, etc. It leads the country with the production capacity of phosphate mining and polyoxymethylene, ranks top in Asia in the production capacity of phosphate compound fertilizer. It won the first prize of the National Management Innovation Award for Petroleum and Chemical Enterprises. It ranked first in the top 50 Chinese fertilizer manufacturing companies voted by the China Petroleum and Chemical Industry Federation in 2019, 176th in the 2019 Fortune list of top 500 Chinese companies, 14th in the "Independent Production and Operation" category of China's top 500 petroleum and chemical companies, and 2nd in China's top 100 agricultural logistics companies in terms of composite competitiveness.

The non-public issuance plans to raise no more than RMB 1,900,229,100, which will be used to fund the 60,000 tons/year polyoxymethylene project, logistics operation upgrading project, the technology upgrade project for the 100,000 tons/year water-soluble monoammonium phosphate for protected agriculture, and the technology upgrade project for comprehensive utilization of fluorine resources, and repay bank loans. The projects to be funded have sound profitability and development prospects. The investment will expand the company's scale and bolster its composite strength and competitiveness. 

As the special legal counsel for the issuance, the DeHeng team, led by partner Wu Zhixu and with primary support from lawyers Yang Jiequn, Liu Shuhan, and Yang Min, worked closely and actively with the issuer and other intermediary agencies and provided professional, high-quality and efficient legal services for the issuance.