After nine years of planning, a breakthrough is finally here! Pesticide leader Lier Chemical initiates change of control

After nearly nine years of planning and multiple adjustments to the proposal, the transfer of control of Lier Chemical (SZ002258), a leading enterprise in the domestic pesticide industry, has achieved a substantive major breakthrough. As of now, the company's share price is 12.05 yuan, with a total market capitalization of 9.645 billion yuan. This long-prepared capital reform has officially entered the implementation phase.

On the evening of May 20, Lier Chemical officially released a heavy announcement. The company's controlling shareholder, Sichuan Jiuyuan Investment Holding Group, together with the acting-in-concert Sichuan Huacai Technology, has determined to transfer the company's equity through public solicitation, planning to transfer a total of 23.5% of the total share capital. This equity transfer plan has successfully obtained the principle approval from the Ministry of Finance, clearing the core approval obstacles.

A clear price floor has been set for this share transfer. The floor price per share is not less than 12.62 yuan. Upon the completion of the delivery of all shares, the identities of Lier Chemical's controlling shareholder and actual controller will undergo a complete change. Meanwhile, multiple high-standard entry conditions have been set for this equity acquisition. It not only requires the intended investor to have a solid background in the chemical industry but also mandates a lock-up period of up to 36 months for the transferred shares, thereby stabilizing the long-term operational order of the enterprise from the source.

Backed by the China Academy of Engineering Physics (CAEP), Jiuyuan Group serves as the core platform for the academy's military-to-civilian industry operations. The integration and reform of its listed platforms have long been on the agenda. Jiuyuan Yinhai (SZ002777), which belongs to the same system as Lier Chemical, also recently disclosed a plan for a change of control. The stock's current price is 16.70 yuan with a market value of 6.817 billion yuan. The simultaneous advancement of equity adjustments by the two major listed platforms demonstrates the Group's determination for industrial integration.

In terms of specific transfer shares, Jiuyuan Group plans to transfer 160 million shares, accounting for 20% of the shareholding; the acting-in-concert Huacai Technology plans to transfer 28.0153 million shares, accounting for 3.5%. The cumulative number of shares transferred by both parties reaches 188 million shares. Previously, the two major shareholders held a total of 32.2% equity in Lier Chemical. After the landing of this large equity transfer, the new investor will hold over 20% of the equity and smoothly enter the core management of the enterprise.

According to relevant regulations on the supervision of state-owned equity, the transfer floor price of 12.62 yuan per share is based on the higher of the weighted average price of the 30 trading days prior to the announcement benchmark date and the net asset value per share of the previous fiscal year. The pricing is rigorous and compliant, fully ensuring the preservation and appreciation of state-owned assets.

To safeguard the fundamentals of the enterprise, this public solicitation has established layers of strict barriers for intended transferees. Eligible entities are limited to legally existing domestic enterprises that must be deeply engaged in the chemical field and familiar with the industry's development laws and industrial operation models. In terms of capital, investors are required to possess strong capital strength to continuously empower the enterprise's long-term strategic layout.

Regarding operational constraint clauses, the new rules explicitly state that the transferee must not reduce the holdings within three years and must not propose moving the company's registered location out of Mianyang, Sichuan within three years. At the same time, they must commit to maintaining the stability of the company's existing main business, not arbitrarily adjusting the core development strategy, and making every effort to stabilize the existing management team and core technical personnel to ensure the orderly production and operation of the enterprise.

Tracing the source of this equity change, it can be traced back to 2017, when news of adjustments to the actual controllers of both Lier Chemical and Jiuyuan Yinhai emerged simultaneously. Subsequently, the reform process underwent twists and turns with two rounds of proposal optimization and adjustment in 2023 and 2025. Now that the two listed companies under its umbrella have successively announced plans to change hands, it marks that the integration of military-to-civilian assets under the CAEP has entered the fast lane.

On the fundamental level, the long reform cycle has not dragged down the company's business development, and Lier Chemical's performance has continued to climb steadily. In 2025, the company achieved a revenue of 9.008 billion yuan, a year-on-year increase of 23.21%; net profit attributable to shareholders was 479 million yuan, a year-on-year surge of 122.33%, with an impressive profit growth performance. As a leading domestic enterprise in the production of glufosinate-P technical, the company's main business foundation is solid, and its high-quality asset attributes are prominent. Coupled with the strict acquisition threshold, this battle for equity has attracted much attention from the capital market, and the identity of the eventual successor has become a focus of the industry.