Sinochem Equipment secures approval for rubber machinery acquisitions

Sinochem Equipment Technology (Qingdao) Co. Ltd has received clearance from the Shanghai Stock Exchange’s (SSE) mergers and acquisitions committee for its proposed acquisition of Yiyang Rubber & Plastics Machinery Group Co. Ltd and Bluestar (Beijing) Chemical Machinery Co. Ltd. The committee issued its approval in a notice dated 20 July 2026, confirming that the proposed share transaction “meets the conditions for restructuring and information disclosure requirements.” However, the committee raised concerns about discrepancies in the performance of Sinochem Equipment’s rubber machinery business compared with Guilin Rubber Machinery and Yiyang Rubber Machinery during the reporting period. The listed company was directed to explain these performance differences, considering factors such as “entrusted management arrangements, business positioning, product and customer structure.” Additionally, the committee sought clarification on Yiyang Rubber Machinery’s revenue recognition policy, specifically whether recognizing revenue “upon customer acceptance” aligns with accounting standards given the custom nature of its products and sales contracts. The SSE stated there were “no further matters requiring implementation.” The approval marks a key milestone in Sinochem Equipment’s broader asset restructuring plan, initially announced in July 2025. The transaction involves issuing shares to acquire 100% of Yiyang Rubber Machinery from China National Chemical Equipment Co. Ltd and 100% of Bluestar (Beijing) Chemical Machinery Co. Ltd from Beijing Bluestar Energy-Saving Investment Management Co. Ltd. Earlier in 2026, the restructuring secured approval from China’s State-owned Assets Supervision and Administration Commission (SASAC). The deal also includes plans to raise supporting funds through a share issue to up to 35 qualified investors. Sinochem Equipment has emphasized that the acquisition will bolster its industrial business without altering the company’s controlling shareholder status.