Beijing Business News(Reporter Liu Fengru) Jiangquan Industrial’s cross-border mergers and acquisitions are a bit addictive. After failing to enter the payment field, Jiangquan Industry has launched a new round of acquisitions. This time it is planned to acquire Green Energy Digital Technology Co., Ltd. (hereinafter referred to as “Green Energy”) for a price of 90 million yuan.
On the evening of November 21, Jiangquan Industry issued an announcement stating that the company and Xi’an Daoheng Tongchuang Enterprise Management Consulting Co., Ltd., Li Xingmin, Shaanxi Zhongxin Tongchuang Digital Technology Partnership (Limited Partnership), and Shaanxi Bode Hengye Energy Technology Partnership on the same day Enterprise (Limited Partnership), Xi’an Fandi Financial Consulting Co., Ltd. and Lvneng Huichong signed a framework agreement to acquire 100% of the total shares of Lvneng Huichong held by the counterparty in cash. After negotiation between the parties, it is estimated that the transaction price of the target company’s equity will not exceed 90 million yuan.
According to the disclosed announcement, Green Energy Smart Charging was established on May 28, 2012. It is a national high-tech enterprise and a “specialized and special new” enterprise in Shaanxi Province. It is a research and development, production and sales of charging and energy storage products, A new energy ecological service provider integrating station investment, construction and operation, charging platform and big data management.
It is understood that the current main business of Jiangquan Industry includes thermal power business and railway special line transportation business. It can be seen that the acquisition of Jiangquan Industry is a cross-border.
According to independent economist Wang Chikun, cross-border mergers and acquisitions are more difficult than industrial mergers and acquisitions. The first is the acquisition of assets in unfamiliar fields, and the value judgment may not be particularly accurate. At the same time, the integration depends on the original management team, and the integration is more difficult.
Investment and financing expert Xu Xiaoheng also said that cross-border mergers and acquisitions are not just the acquisition of a company. How to do a good job in corporate integration and achieve the effect of 1+1>2 is also a practical problem.
As of September 30, 2021, the balance of monetary funds on Jiangquan’s account was approximately 33,435,800 yuan, which could not fully cover the estimated price of the subject. So where does the money for the acquisition come from is also a concern for investors. In this regard, a reporter from Beijing Commercial Daily called Jiangquan Industrial’s Secretary of the Board’s Office for an interview, but no one answered the call.
A reporter from Beijing Business Daily noted that Jiangquan Industry is a bit addicted to cross-border acquisitions.
On January 5 this year, Jiangquan Industry announced that the company intends to acquire 100% of Beijing Xinhuo Technology Co., Ltd. (hereinafter referred to as “Xinhuo Technology“). Corefire Technology is a software technology service provider that focuses on the financial technology payment field. Through its self-developed payment industry channel provider management platform system, payment industry merchant management platform system and other software systems, it provides outsourcing services to acquirers, banks, Participants in the payment industry such as merchants provide one-stop industry solutions.
After the completion of the acquisition, Jiangquan Industry will cross-border into the payment field. A reporter from Beijing Business Daily noted that Jiangquan Industry has the same “recipe” no matter whether it is acquiring Xinhuo Technology or Green Energy Huichong, which is to increase financing from actual controllers.
According to the announcement previously disclosed by Jiangquan Industry, the company intends to raise 38.225 million yuan from three specific investors in Beijingan, Beijingyao, and Beijingzhong, of which 330 million yuan will be used to purchase Xinhuo Technology, and the remaining funds will be raised. Used to supplement working capital.
Regrettably, due to the long duration of the fixed-increasing issue and the greater uncertainty in the subsequent completion time, Jiangquan Industrial’s plan to purchase additional assets has failed.
Jiangquan Industrial was also discussed in this cross-border acquisition. Many investors seemed not to be optimistic about this acquisition. Some stockholders made comments such as “This is going to tell the story again”, “Last year, they bought and issued more stocks before they took off their hats, but they had a miscarriage later, and this time they did the same thing again.” There are also stockholders who ridiculed that “it is either in reorganization or on the road to reorganization.”
Behind the crossover, Jiangquan’s performance was weak. In the first half of this year, Jiangquan’s revenue and attributable net profit both fell, and the company’s attributable net profit suffered a loss in the first three quarters of this year. Jiangquan Industry said frankly that the compound growth rate of the company’s main business income in the last three years was only 6.82%, and the income growth rate was relatively slow. The regional nature of the company’s business has severely restricted the company’s business growth space. Therefore, it is difficult to achieve the goal of making listed companies bigger and stronger by relying solely on existing businesses. In order to achieve long-term development of listed companies and achieve good returns to shareholders, companies must undergo business transformation.Return to Sohu to see more
Editor:
Disclaimer: The opinions of this article only represent the author himself. Sohu is an information publishing platform. Sohu only provides information storage space services.
.