On February 26, 2025, Guangdong Handar Holding Group Co., Ltd. (Stock Code: 002683, "Guangdong Handar") announced the completion of its acquisition in cash of 21 % of the shares of Xinjiang Xuefeng Sci-Tech (Group) Co., Ltd. (Stock Code: 603227, "Xuefeng Sci-Tech") held by Xinjiang Agriculture and Animal Husbandry Investment (Group) Co., Ltd. (the “Transaction”).
Guangdong Handar and Xuefeng Sci-Tech are both A-share listed companies. The transaction consideration was RMB 2.205 billion. Upon completion of the Transaction, Guangdong Handar will obtain controlling interest in Xuefeng Sci-Tech, and Xuefeng Sci-Tech will become a subsidiary controlled by Guangdong Handar.
Guangdong Handar was established in 1988. It is a subsidiary of Guangdong Environmental Protection Group Co., Ltd., which is under the supervision of the State-owned Assets Supervision and Administration Commission of Guangdong Province. It is the first listed company in China to provide integrated mining and civil explosive services and is among the top three enterprises in China in terms of industrial explosive production capacity. It is a leading player in the mining service industry.
Xuefeng Sci-Tech's business includes the manufacturing of civil explosives and engineering blasting services, as well as the production of melamine, ammonium nitrate and other products within the natural gas chemical circular economy industrial chain model. It is the sole producer of ammonium nitrate and nitro compound fertilizers in Xinjiang. Xuefeng Sci-Tech has a comprehensive integrated industrial chain in the civil explosives industry. Its licensed production capacity for industrial explosives ranks second in Xinjiang, and it has qualifications for the armed escort and transportation of civil explosives.
Guangdong Handar’s acquisition of Xuefeng Sci-Tech expands and consolidates the company’s strategic presence in Xinjiang, fully leveraging its strategic synergy with Xuefeng Sci-Tech and enhancing Guangdong Handar's market competitiveness.
JunHe acted as legal counsel to Guangdong Handar. They completed the acquisition plan demonstration, conducted the legal due diligence, drafted the transaction agreements, and issued legal opinions. JunHe also assisted Guangdong Handar in communicating with the state-owned asset regulatory authorities. JunHe's antitrust team assisted both parties in completing the merger control review. With its consistent delivery of efficient and rigorous legal services and detail-oriented and professional expertise, JunHe’s team was unanimously recognized and highly trusted by the listed company and the other parties.
Partners HUANG, Xiaoli (Ally) and YAO, Jiwei (Jervis), and counsel YE, Jianxin led the JunHe team. Partner ZHAO, Jikui provided support for the internal control matters. Partner GONG, Mingfang was responsible for the merger control filing.