Latest News: On September 5, 2022, Milkway passed the deliberation of the board of directors and agreed that the company would acquire 70% equity of Nanjing Jiudi Chemical Co., Ltd. with self-raised funds, and the transaction price was tentatively set at 250 million yuan RMB. After the acquisition, Nanjing Jiudi Chemical Co., Ltd. will become the company’s holding subsidiary.
Nanjing Jiudi Chemical Co., Ltd. is a professional company engaged in the trade of organic chemical raw materials and fine chemicals. In 2010, the company became the authorized agent of Dow Corning (now Dow) brand in China. In early 2020, the company became the Greater China distributor of DuPont Transportation and Industry. The company is now the distributor of Dow in China, the distributor of Tosoh Japan in Greater China, and the distributor of DuPont in Greater China. Main products are Dow silicone oil, linear body, defoamer, release agent; Japan Tosoh modified MDI, polyether silicone oil, polyether polyol; DuPont engineering plastics and other products, with various channels, rich customer resources, and certain competition Advantage.
The impact of the transaction on the company
MilkweiThe acquisition of 70% equity of Jiudi Chemical is based on the decision made by the analysis and evaluation of the target company. Through the merger of the target company, the company can provide services in the existing supply chain. On the basis of , expand the business line in the field of chemical distribution, and extend the distribution network layout in Asia Pacific and North America in the future, laying a further foundation for building a “super chemical Amazon”.
The target company is now the distributor of Dow Silicones (formerly Dow Corning) in China, the distributor of DuPont in Greater China, and the distributor of Tosoh Polyurethane in Japan in Greater China. Relying on the existing customer base and industry scope, more strategic suppliers will be introduced in the future. At present, the main products are: silicone basic chemicals, silicone functional chemicals (defoamer, mold release agent, special silicone oil, etc.), paper release agents, catalysts and other additives, special silicone rubber, various filling agents Sealing and thermally conductive adhesive materials, engineering plastics and a variety of isocyanate products. The key industries involved are: automobiles, electronics, electrical appliances, new energy, textiles, industrial processing, etc. With rich customer resources and stable supplier base, it has certain competitive advantages. The target company and the company have good synergy and complementarity in customers. In addition, the target company and the company provide customers with different service systems and service requirements for customer groups. The target company mainly provides services related to the distribution of specialty chemicals, and the company can integrate the one-stop chemical supply chain system of both parties. Customers provide comprehensive and multi-angle efficient services, and according to the rapid development of the supply chain industry, explore and expand existing target new user needs and service scope. In addition, the target company can also provide a variety of product solution services in the field of new energy vehicles, which has been recognized by the market.
The target company’s business is mainly divided into warehouse sales revenue and direct shipment sales revenue, of which warehouse sales revenue accounts for a relatively high proportion of its business. The revenue of this business requires the target company to provide customers with supporting warehousing and transportation services in addition to the pure product distribution and technical service business operations. Currently, it has leased warehouses in Nanjing, Shanghai, Zhangjiagang and other places. After the integration of the two parties, its It can rely on the company’s existing 7 cluster resources to form a network layout, transform from a simple distribution business to the provision of one-stop solutions, and strengthen customer stickiness.
