Announcement of major contracts of Rongsheng Petro

2022-10-13
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Rongsheng Petrochemical Company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions

according to the needs of the company's business development, in order to ensure the stable supply of MEG (ethylene glycol, which is colorless, transparent and viscous liquid under normal conditions, is an important basic organic raw material for petrochemical industry, which is mainly used for the production of polyester and antifreeze, lubricant, plasticizer, activator and explosives, the same below), which is the main raw material for polyester production of the company, it was reviewed and approved at the fifth meeting of the second board of directors, The company plans to sign a supply contract with saber Asia Pacific PTE. Ltd. (hereinafter referred to as "supply contract") to purchase MEG from Mei Lan, who developed earlier in the field of fluorine materials, and a sales agreement to purchase MEG from Sumitomo chemical Asia PTE. Ltd. (hereinafter referred to as "sales agreement") (the above two contracts or agreements are collectively referred to as "MEG purchase contract")

I. contract risk tips

(I) conditions for the effectiveness of the contract

1. Supply contract: the contract will take effect from January 1, 2011 after the parties to the contract sign the precautions and functional characteristics of the horizontal tension machine

2. Sale and purchase agreement: it will take effect after being signed and confirmed in writing by the legally authorized representatives of the parties to the contract

(II) performance period of the contract

1. Supply contract: from January 1, 2011 to December 31, 2015

2. Sales agreement: from the effective date of the contract to December 31, 2011

(III) major risks and uncertainties of the contract

the above MEG procurement contract is a framework contract, and the company also needs to sign relevant contracts or agreements with the other party during monthly specific procurement

(IV) impact of the contract on the company

the signing of the above MEG purchase contract is conducive to ensuring the stable supply of MEG, the main raw material for polyester production, and will have a certain positive impact on the company's current and future business results

II. Introduction of the parties to the contract

1. Sabah Asia Pacific private Co., Ltd. has two large production bases in Saudi Arabia, Al Jubail and Yan Bu, equipped with 16 world-class production integrated units, with an annual production of 34.42 million tons of PTA and MEG. The parent company Saudi basicindustrycorporation (SABIC) was founded in 1976. SABIC is among the world's leading petrochemical companies in terms of sales volume and product diversity. It is the largest and most profitable non oil company in the Middle East and the fifth largest petrochemical manufacturer in the world. SABIC is a listed company headquartered in Riyadh, the capital of Saudi Arabia. The Saudi government owns 70% of the shares, and the remaining 30% is owned by private investors in Saudi Arabia and other member countries of the Gulf Cooperation Council

in 2010, 2009 and 2008, the purchase amount of the company from saber Asia Pacific private Co., Ltd. was 828.9837 million yuan, 459.8041 million yuan and 753.9745 million yuan, accounting for 6.81%, 5.41% and 12.80% of the total purchase amount of the year respectively

saber Asia Pacific Pte Ltd has no relationship with the company. It has strong comprehensive strength, good credit status and payment ability, and has the ability to perform

2. Sumitomo chemical Asia Private Co., Ltd. is mainly engaged in the production and sales of chemicals, providing a series of products in the field of basic chemicals, petrochemical products and plastics, fine chemicals, it related chemicals and materials, and agricultural chemistry. China is still in the deep development stage of industrialization, informatization, urbanization, marketization, and internationalization, as well as products and drugs. The company is headquartered in Singapore and employs about 26900 people worldwide. The MEG device invested by the company in Saudi Arabia began normal supply in the second half of 2009, and the factory is located in rabig, Saudi Arabia

in 2010, the purchase amount of the company from Sumitomo chemical Asia Pte Ltd was 209.042 million yuan, accounting for 1.72% of the total purchase amount of the year

Sumitomo chemical Asia Private Co., Ltd. has no relationship with the company. Its comprehensive strength is strong, its credit status and payment ability are good, and it has the ability to perform the contract

III. main contents of the contract

(I) supply contract

the company purchases MEG from saber Asia Pacific private Co., Ltd. the purchase volume is 18000 ~ 192000 tons/year, and the pricing basis is the average ICIS spot price ("ICIS spot price" refers to the US dollar/metric ton pricing in the weekly ICIS pricing report under the title of ICIS monoethyleneglycol (CFR main port in China) published on the site, "ICIS spot average price" refers to the total average price calculated according to the ICIS spot price within one month, the same below), and the contract period is from January 1, 2011 to December 31, 2015

according to the average ICIS spot price of MEG in December 2010 (1047.88 US dollars/ton, equivalent to 6939.79 yuan/ton (converted based on the central parity rate of RMB exchange published by the people's Bank of China on December 31, 2010, i.e. 1 US dollar =6.6227 yuan), the tax inclusive price is about 8566.13 yuan/ton (tariff rate 5.50%, VAT rate 17%), the same below), The transaction amount involved in the contract is about 154,19omnis, which integrates modern technology and Nordic simple design into one, 34-164.697 million yuan/year. The main reason for the significant increase compared with 2010 is that the production capacity of Shengyuan chemical fiber polyester, a wholly-owned subsidiary of the company, is gradually put into production, and the demand for MEG is increased

(II) sale and purchase agreement

the company purchases MEG from Sumitomo chemical Asia Pte Ltd. the purchase volume is 36000 tons/year, the pricing basis is the average spot price of ICIS, and the contract period is from the effective date of the contract to December 31, 2011

according to the average ICIS spot price of MEG in December 2010, the transaction amount involved in the contract is about 308380700 yuan

IV. impact of the contract on the company

the signing of the above MEG purchase contract is conducive to ensuring the stable supply of MEG, the main raw material for polyester production, and will have a certain positive impact on the company's operating results in this year and future fiscal years

meg is a bulk commodity. The above MEG purchase contract is negotiated and determined in accordance with the principles of fairness, rationality and marketization, which will not have a significant adverse impact on the business independence of the company, and the main business of the company will not rely on the parties to the contract due to the performance of the above MEG purchase contract

v. contract review procedure

the fifth meeting of the second board of directors of the company considered and adopted the proposal to sign a MEG supply contract with Sumitomo chemical Asia Pte Ltd. and the proposal to sign a MEG supply contract with SABIC Asia Pacific Pte Ltd. (SABIC) with 9 affirmative votes, 0 negative votes and 0 abstention votes respectively

it is hereby announced

board of directors of Rongsheng Petrochemical Co., Ltd.

January 19, 2011

note: the source of this reprint is indicated. The reprint is for the purpose of transmitting more information, and does not mean to agree with its views or confirm the authenticity of its content

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