Just as the dollar capital represented by Buffett continued to add 260 billion dollars to Japan at the beginning of the month, the Middle East Sovereign FundBut they made a big move to lay out China.

Hengli Petrochemical revealed yesterday evening that the company's controlling shareholder signed a memorandum of understanding with Saudi Aramco.According to the memorandum of understanding, the Middle Eastern tycoon will pay 11 billion yuan this time and will hold 704 million shares, making it the sixth largest shareholder of Hengli Petrochemical.

King of these, that night, Rongsheng PetrochemicalIt also revealed the latest progress of cooperation with Saudi Aramco. Rongsheng Petrochemical said in an announcement that the company and Saudi Aramco are actively promotingThe two sides plan to separately sell and buy 50% of the shares of CICC, a wholly-owned subsidiary of Rongsheng Petrochemical, and SASREF, a wholly-owned subsidiary of Saudi Aramco, and joint development of CICC and SASREF expansion projects in proportion to equity, respectively.

However, according to the big news, the stock prices of Hengli Petrochemical and Rongsheng Petrochemical are moving higher and lower today. Hengli Petrochemical once fell more than 4% in the intraday market, and Rongsheng Petrochemical once fell more than 3%.

Saudi Aramco plans to invest nearly 11 billion dollars in Hengli Petrochemical

After the market yesterday, Hengli Petrochemical issued an announcement stating that the controlling shareholder Hengli GroupA memorandum of understanding has been signed with Saudi Arabian Oil Company (Saudi Aramco for short) Saudi Aramco plans to acquire more than 10% of Hengli Petrochemical's shares as a strategic investor.

According to Hengli Petrochemical's current stock price estimate, Saudi Aramco's equity investment is close to 11 billion yuan. This is another time that Saudi Aramco invested heavily in A-share petrochemical companies after taking a stake in Rongsheng Petrochemical in March last year.

Up to now, Hengli Group and its co-actors hold a total of 5.31 billion shares of Hengli Petrochemical, accounting for 75.45% of the company's issued share capital (7.04 billion shares). The relevant share transfers covered by the Memorandum will not result in a change in the actual controller of the company.

If matters related to the Memorandum of Understanding are successfully implemented, Saudi Aramco (or a related party under its control) will hold 704 million shares, making it the sixth largest shareholder of Hengli Petrochemical.

On the same day, Hengli Petrochemical disclosed its 2024 quarterly report. During the reporting period, revenue was 58.39 billion yuan, up 4% year on year; net profit to mother was 2,139 billion yuan, up 109.8% year on year. Basic earnings per share were $0.30. Earlier (January 29), Hengli Petrochemical announced the 2023 annual performance advance announcement, showing that in 2023, Hengli Petrochemical expects to achieve net profit attributable to shareholders of listed companies of about 6.9 billion yuan, an increase of about 197.63% over the previous year. It is estimated that net profit without return to mother will be around 5.64 billion yuan, an increase of about 439.57% over the previous year.

In terms of stock price performance, as of press release, Hengli Petrochemical fell more than 2% to 1,524 yuan, with a market capitalization of 107.3 billion yuan.

Rongsheng Petrochemical reveals the latest progress of cooperation with Saudi Aramco

On the evening of the same day, Rongsheng PetrochemicalIt also revealed the latest progress of cooperation with Saudi Aramco.

The announcement stated that on January 2, 2024, the company signed a Memorandum of Understanding with Saudi Aramco. The memo shows,The two sides are discussing Rongsheng Petrochemical (or its affiliates) to acquire 50% of the shares of Saudi Aramco's wholly-owned subsidiary Jubail Refining & Chemical Company (“SASREF”)It is also planned to increase production capacity and improve product flexibility, complexity and quality through expansion.

At the same time,The two sides are also discussing the potential acquisition of no more than 50% (50%) of the shares of Ningbo Zhongjin Petrochemical Co., Ltd. (“CICC”), a wholly-owned subsidiary of Rongsheng Petrochemical (“CICC”)It also jointly developed the upgrade and expansion of CICC's existing plant and developed a new downstream Rongsheng New Materials (Zhoushan) project.

The Memorandum of Understanding is a strategic and framework agreement between the two parties based on their intention to cooperate. After the signing of the above memorandum of understanding, the company and Saudi Aramco have actively advanced. They have now reached agreement on some matters and signed a “Cooperation Framework Agreement”. The main content is that the two parties intend to separately sell and purchase 50% of each of Rongsheng Petrochemical's wholly-owned subsidiary CICC and Saudi Aramco's wholly-owned subsidiary SASREF, and jointly develop expansion projects for CICC and SASREF according to the share ratio.

The company stated that the two parties are conducting further discussions on other matters in the memorandum of understanding and the specific terms of the equity and expansion transactions in the “Cooperation Framework Agreement”, and that in the future, the company will fulfill the corresponding decision-making procedures and information disclosure obligations according to the progress of the cooperation matters.

In March of last year, Saudi Aramco announced the acquisition of 10% of Rongsheng Petrochemical's shares at a price of 24.3 yuan per share, with a total transaction premium of 24.6 billion yuan reaching 88%. This transaction made A-share shareholders lament that the acquisition of “Middle Eastern Tycoon Power” was officially completed in July of last year. Currently Aramco Overseas Co., Ltd. is also the second largest shareholder of Rongsheng Petrochemical.

In terms of performance, on January 31, Rongsheng Petrochemical released a performance forecast. Net profit attributable to shareholders of listed companies is expected to be between 1 billion yuan and 1.2 billion yuan in 2023, a year-on-year decrease of 64.07% to 70.06%; basic earnings per share are 0.1 yuan to 0.12 yuan. The main reason for the change in performance is daily operations.

In terms of stock price performance, Rongsheng Petrochemical's stock price fell today. As of press release, it fell 1.89% to 10.91 yuan, with a market value of 110.6 billion yuan.