Sinopec Shanghai Petrochemical to Consolidate Baling New Materials as Subsidiary

Sinopec Shanghai Petrochemical Co ( (HK:0338) ) has provided an announcement.

Sinopec Shanghai Petrochemical has approved a plan to consolidate Baling New Materials, a 50:50 joint venture with Hunan Petrochemical, into its group financial statements by amending the joint venture’s Articles of Association and the terms of their Joint Venture Agreement. Although the equity ownership of Baling New Materials will remain unchanged, the move will strengthen Sinopec Shanghai Petrochemical’s voting rights and corporate governance control, effectively turning Baling New Materials into its subsidiary and shifting consolidation from Hunan Petrochemical to the company. The transaction is classified under Hong Kong Listing Rules as both a connected and discloseable transaction, requiring reporting, public announcement, and approval by independent shareholders at an extraordinary general meeting, with a circular to be dispatched by 9 February 2026 and a new joint venture agreement to be signed by 31 March 2026, underscoring tighter group integration and potentially greater strategic and financial influence over the new materials business.

The most recent analyst rating on (HK:0338) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on Sinopec Shanghai Petrochemical Co stock, see the HK:0338 Stock Forecast page.

More about Sinopec Shanghai Petrochemical Co

Sinopec Shanghai Petrochemical Company Limited is a major integrated petrochemical producer in China, operating in the refining and chemical industry with a focus on processing crude oil into fuel products and a broad range of chemical and new material products for domestic and international markets. The company is controlled by China Petroleum & Chemical Corporation (Sinopec Corp.), one of the country’s largest state-owned energy and chemical groups.

Average Trading Volume: 10,891,532

Technical Sentiment Signal: Buy

Current Market Cap: HK$27.99B

Find detailed analytics on 0338 stock on TipRanks’ Stock Analysis page.