Jiahua Energy (600273): The Subsidiary Company Plans To Invest No More Than 60 Million Yuan To Construct The Third Phase Supporting Project Of Electronic Grade Sulfuric Acid

Jiahua energy (600273. SH) announced that on July 28, 2021, the company and its wholly-owned subsidiary Zhejiang Jiafu New Material Technology Co., Ltd. (hereinafter referred to as "Jiafu new materials") and BASF high purity electronic chemicals (Jiaxing) Co., Ltd. (hereinafter referred to as "BASF (Jiaxing)") signed the cooperation agreement on phase III plants, To provide workshop, supporting facilities and raw material supply for BASF (Jiaxing) to build an electronic grade sulphuric acid plant. After completion, Jiafu new materials will lease the plant and land to BASF (Jiaxing) and provide sulfur trioxide as its production raw material. BASF (Jiaxing) electronic grade sulphuric acid plant produces electronic grade sulfuric acid with its technology and equipment. BASF (Jiaxing) and its affiliated companies have exclusive sales and distribution rights. Jiafu new materials, a wholly-owned subsidiary, intends to invest no more than 60 million yuan in the construction of factory buildings and supporting facilities.

The investment target of this investment is the third phase supporting project of electronic grade sulfuric acid (including supporting plant and supporting public engineering project). At present, the company does not have the technology and ability to produce electronic grade sulfuric acid. This cooperation only provides workshop, raw materials, sulfur trioxide and supporting services for BASF (Jiaxing).

It is reported that BASF (Jiaxing) electronic grade sulfuric acid project is conducive to improving the added value of sulfuric acid series products. The signing of this cooperation agreement is a further in-depth cooperation between the company and BASF (Jiaxing) on the existing basis. By combining the resources and technical advantages of all parties, it will have a positive impact on the future development of Jiahua energy.