On the evening of February 27, Shenma Shares disclosed two announcements related to capital operations. The company plans to continuously optimize its asset structure and focus on its core business by adopting a “one-in, one-out” strategy—acquiring the remaining equity in its wholly-owned subsidiary and transferring its equity stake in its associated subsidiary—thereby injecting strong momentum into the company’s high-quality development.

According to the announcement, Shenma Shares plans to acquire, for cash of 237 million yuan, a 45.13% minority stake in Henan Shenma Poly Materials Co., Ltd. (referred to as “Poly Materials”) held by China Pingmei Shenma Group Nylon Technology Co., Ltd. Upon completion of the transaction, the company’s equity stake in Poly Materials will increase from 54.87% to 100%, transforming Poly Materials from a controlled subsidiary into a wholly-owned subsidiary. As a result, the company’s control over its core assets will be comprehensively enhanced.

It is reported that Puliy Material has been deeply engaged in the nylon 6 chip sector and has now established a production capacity of 300,000 tons per year. The nylon 6 chips produced by the company match or even surpass their internationally imported counterparts in several key performance indicators, including strength, toughness, and heat resistance. In recent years, the company has demonstrated strong profitability, with profits for the years 2023 to 2025 (unaudited) amounting to RMB 29.9685 million, RMB 12.5389 million, and RMB 30.4076 million, respectively.

After fully acquiring Poly Materials, Shenma Shares will further deepen its strategic synergy with Poly Materials, achieving deep integration in areas such as resource allocation, technological R&D, and market expansion. This will effectively enhance operational efficiency and overall competitiveness, providing solid support for strengthening and optimizing the company’s core nylon business.

Regarding asset optimization, Shenma Shares announced its intention to transfer a 49% stake in Henan Shouheng New Materials Co., Ltd. (referred to as “Shouheng New Materials”) to its controlling shareholder, China Pingmei Shenma Holding Group Co., Ltd., for RMB 41.854 million. Upon completion of the transaction, the company will no longer hold any equity interest in Shouheng New Materials.

Financial data show that Shouheng New Materials has faced operational pressure in recent years. In 2024, its net profit suffered a loss of 82.0429 million yuan, and in the first half of 2025, its net profit posted a loss of 51.7269 million yuan. By divesting this portion of assets, Shenma Shares will effectively reduce investment risks, concentrate its capital and resources on the core links of the nylon industry chain, further optimize its industrial layout, and enhance the overall quality of its profitability.

As a leading enterprise in China’s nylon industry, Shenma Shares operates across two major sectors—chemicals and synthetic fibers—and has established an industrial structure centered on flagship products such as nylon 66 salt and intermediate products for nylon 66 salt, engineering plastics, industrial filaments (tire cord fabric), and airbag yarn, supported by raw and auxiliary materials as well as related products.

A relevant official from Shenma Shares explained that by fully acquiring its core subsidiary, Shenma Shares has strengthened its core business foundation and enhanced its control over the industrial chain. By divesting non-core, loss-making assets, the company has optimized its asset structure and reduced its operational burden. Between these “one in, one out” moves, the synergies within the company’s industrial chain will be further unleashed, and the quality of its assets will continue to improve.