On Tuesday evening, Xindu Chemical announced that the company will jointly establish Guangxi Beibu Gulf Agricultural Resources Co., Ltd. with investment from Guangxi Salt Industry. This move is mainly for the purpose of self-built sales channels, increase sales profits, and prepare for the increase in sales of 600,000 tons of nitro compound fertilizer project after the investment project is put into production. It is understood that Xindu Chemical's registered capital for the establishment of the Beibu Gulf is 10 million yuan, of which Xindu Chemicals contributed 7 million yuan, accounting for 70% of the equity, and Guangxi Zhuang Autonomous Region Salt Industry contributed 3 million yuan, accounting for 30% of the equity. The main business of Beibu Gulf Agricultural Resources is the sale of agricultural production materials such as chemical fertilizers, pesticides, agricultural machinery, and seeds. Xindu Chemical expects to achieve a net profit of 3 million to 5 million yuan per year based on the sales price of existing products. The announcement also revealed that Chairman Jia Jiayun had pledged 9 million shares of Xindu Chemicals held by him to Chongqing International Trust Co., Ltd. on May 24, 2011, which accounted for 5.44% of the total number of shares in Xindu Chemicals. However, the company’s secretary-general, Fan Ming, stated that this is a personal act of Yan Jiayun and does not involve the company’s operation or investment.
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