Conglin Technology (688370.SH) plans to acquire 34% of the shares of the oil and fat new energy company Integrated Bio to lay out the biodiesel sector

Zhitong Finance App News, Conglin Technology (688370.SH) announced that the company plans to use its own capital of RMB 68 million to acquire the shares of Guangxi Fusion Bioenergy Technology Co., Ltd. (Integrated Biotechnology for short) and increase its capital. Among them, it is proposed to transfer 21% of the shares in Fusion Biology held by Xiamen Nuohongsheng Trading Co., Ltd. (Xiamen Nuohongsheng for short) for RMB 31.5 million; it is proposed to increase the capital of Fusion Biology with RMB 36.5 million to purchase additional registered capital of RMB 36.5 million. After the transaction is completed, Fusion Biotech's registered capital will increase to 20 million yuan. The company will hold 34% of Fusion Biotech's shares, and Fusion Biotech will not be included in the scope of the company's consolidated statement.

According to reports, the target company is a new energy oil company mainly engaged in the processing and sale of industrial fats, biodiesel, bioplasticizers, etc. The main products are first-generation biodiesel (UCOME) and biomass marine fuel (B24). The project is located in Nanning City, Guangxi Zhuang Autonomous Region. The total scale of the project is 300,000 tons/year of biodiesel. The first phase of the project plans to invest about 300 million yuan, and it is proposed to build a total annual output of 200,000 tons/year of biodiesel. The first phase of the project is still under construction and is expected to be completed and put into operation within 2025. The project uses advanced bioenzymatic technology, which has the advantages of good safety, low environmental pressure and good economy. The current shareholders of the target company have been deeply involved in the industry for many years, and have certain industry experience and foundation in everything from raw material procurement, process production to sales channels.

The bioenzymatic production process used by the target company is widely applicable. It can not only process raw materials for high-acid oil, but also take into account non-edible oils such as waste vegetable oil and gutter oil. The main product, biodiesel, can be used in downstream transportation fuel fields such as land, ships, and aviation. Since there is no need to add acid and alkali catalysts, pollution is greatly reduced. In particular, wastewater discharge is reduced, and wastewater COD is low, which is easier to treat than traditional processes, and has obvious environmental advantages. The target company uses an advanced full-enzyme production process. Through lipase modification, this technology removes the inhibition of lipase by methanol and glycerin, and has achieved a breakthrough in the enzymatic process, which can greatly reduce single enzyme consumption, achieve safety, environmental protection, and cost reduction while significantly improving product yield, leading to most existing processes in the industry. The company plans to lay out the biodiesel sector through this transaction to achieve further expansion in resource recycling and help upgrade China's fossil energy to green and low-carbon renewable energy.