Foundation and privatization
In October 2001, Wanhua Group Corporation formed another subsidiary Wanhua Industrial Group (founded as, known as since 2008) as part of a debt-to-equity swap. Central Government owned bad banks managers China Huarong and China Cinda were the minority shareholders. Cinda and Huarong later sold the shares of Wanhua Industrial Group.
According to the company itself, Wanhua Group Corporation injected all the assets to Wanhua Industrial Group at the time of the debt-to-equity swap, which including the shares of Yantai Wanhua Polyurethane, Yantai Huali, Wanhua Microfiber , etc.[8]
Wanhua Industrial Group was the direct parent company of the listed company Yantai Wanhua Polyurethane since 2001 and effective in March 2003.[9] Wanhua Industrial Group still owned 47.92% shares of the listed company as of 31 December 2017, before another company shake up in January 2018.[10]
Yantai Huali was a combined steam and electric power supplier of the listed company.[11]
In 2007, the Yantai city-owned Wanhua Group Corporation sold a further 25% stake of Wanhua Industrial Group to a consortium of Pemex, Deutsche Bank and one other investor.[12][13] After the deal, as of 2007, Wanhua Group Corporation owned 50.50% shares of Wanhua Industrial Group, the aforementioned consortium, via a BVI company Prime Partner International Limited, owned 25%,[13][14] and the rest (24.58%) was owned by Yantai Huali.[13]
By 2005, Yantai Huali was significantly (37.60%) owned by Wanhua Industrial Group. It was followed by Wanhua Group Corporation for 31.94% shares as well as employee stock ownership for the rest of the shares.[8] But since December 2006, Yantai Huali was majority owned by the managers of the listed company. Yantai Huali acquired 15.04% shares of Wanhua Industrial Group from Huarong in 2005[8] and 9.54% shares from Cinda in 2006.[15] The change in ownership of Yantai Huali, as well as acquiring the shares of Wanhua Industrial Group, was considered as an indirect employee stock ownership of the listed company.[15][16]
In 2013, Wanhua Industrial Group recapitalized another RMB4 billion and diluting the stake of the existing shareholders.[17]
BorsodChem acquisition
Wanhua Industrial Group was interested to buy Hungarian company BorsodChem in the late 2000s. By 2009, Wanhua Industrial Group already acquired about two-thirds of mezzanine capital of the BorsodChem.[18]
In 2011, Wanhua Industrial Group formally acquired BorsodChem.[19][20] It was the biggest Chinese outbound investment deal in Hungary.[21] The buyout of BorsodChem from private equity firms Permira and Vienna Capital Partners came at a financially bleak time for BorsodChem and allowed the company to avoid laying off its 2700 employees.[22][23]
split and reverse IPO
In 2017, the State-owned Assets Supervision and Administration Commission (SASAC) of the Yantai Municipal People's Government, transferred 39.497% stake of Wanhua Industrial Group to another city government-owned company Yantai Guofeng .[10] Yantai's SASAC acquired the aforementioned stake from its subsidiary Wanhua Group Corporation in 2015. (see above section)
In January 2018 Wanhua Industrial Group was split into two companies: the surviving Wanhua Industrial Group as well as. The latter became the new largest shareholder of the listed company instead.[25] The latter also owned the assets that directly related to polyurethane production,[26] including BorsodChem. However, the latter also reverse merged with the listed company in February 2019.[27]
As of 31 December 2018, after the split, Wanhua Industrial Group had a net assets of RMB4.930 billion.[26]
