Jiangquan Industry (600212) announced on the evening of November 21 that the company intends to privately issue no more than 154 million shares (including the number) to Beijingan, Beijingyao and Beijingzhong, and the total amount of funds to be raised is expected to not exceed 453 million yuan. (Including this figure), after deducting the issuance costs, all are used to supplement the liquidity of listed companies, and mainly invest in the operation of green energy and smart companies, cut into the new energy industry, and implement business transformation.
Bei Jing An, Bei Jing Yao, and Bei Jing Zhong are all companies controlled by Xu Yiming, the actual controller of Jiangquan Industrial, and constitute related parties of the listed company.
Previously planned to acquire Corefire Technology unsuccessful
The main business of Jiangquan Industry includes two major categories: power generation business and special railway transportation business. Two years ago, Jiangquan Industry just completed the change of ownership.
On November 10, 2019, Jiangquan Industry received the “Enforcement Ruling of Shenzhen Intermediate People’s Court of Guangdong Province” and “Confirmation of Auction Transaction by Shenzhen Intermediate People’s Court” from Hong Yicheng. The Shenzhen Intermediate People’s Court issued a ruling on the public auction of 65.667 million shares of Jiangquan Industry held by Shenzhen Dasheng Agricultural Group Co., Ltd., and the ownership of the above shares belongs to the buyer Jing Hong Yicheng. Jinghong Yicheng will become the largest shareholder of Jiangquan Industry after taking over.
Jiangquan Industry announced on the evening of November 22, 2019 that the 65.67 million shares of the company that Jinghong Yicheng won through judicial auctions had completed the transfer. At present, Jing Hong Yicheng holds 65.67 million shares of the company, accounting for 12.83% of the company’s total share capital, becoming the company’s controlling shareholder, and Xu Yiming has become the company’s actual controller.
It is worth mentioning that before this planned non-public issuance of shares, Jiangquan Industry had disclosed its proposed non-public issuance of A shares. The announcement at that time showed that Jiangquan’s issuance targets were also Beijingan, Beijingyao and Beijingzhong. Jiangquan Industrial intends to privately issue no more than 154 million shares at a price of 2.49 yuan per share, and the total amount of funds raised does not exceed 382 million yuan. After deducting the issuance cost, all the shares will be used to purchase 100% of the shares of Xinhuo Technology and supplement the liquidity of the listed company. .
Founded in 2016, Xinhuo Technology is a software technology service provider focusing on the payment field. The main service targets of CoreFire Technology are the major participants in the payment industry such as third-party payment companies, banks, merchants, acquiring outsourcing service institutions, etc. And many other software systems, establish innovative business marketing models, and are committed to providing technical solutions to major participants in the payment industry.
In its announcement at that time, Jiangquan Industry stated that the company intends to raise funds through this non-public issuance of stocks, acquire software technology companies in the payment field, develop new businesses, realize the diversified development of the company’s main business, and expand new profit growth points. Improve the company’s operating performance, asset quality and sustainable development capabilities.
Jiangquan Industry held an interim board meeting on September 27, and reviewed and approved the “Proposal on Termination of Non-public A Share Issuance and Withdrawal of Application Documents”, agreed to terminate the company’s non-public issuance of A shares, and applied to the China Securities Regulatory Commission for withdrawal The application documents for this non-public issuance of stocks.
In this regard, Jiangquan Industrial’s statement is that the non-public issuance of shares involves the acquisition of underlying assets. Since the disclosure of the non-public issuance plan on January 4, 2021, the company’s board of directors, management and intermediaries have been actively promoting The work of this non-public issuance of stocks has currently taken a long time, and there is a large uncertainty in the subsequent completion time. The company comprehensively considers the current capital market environment, the company’s actual situation, development plans and many other factors, and has fully communicated and prudently demonstrated with relevant parties. The company intends to terminate the non-public offering and apply to the China Securities Regulatory Commission to withdraw the non-public offering. Application documents for issuance of stocks. The company’s current production and operation activities are normal, and the termination of the non-public issuance of A shares will not adversely affect the company’s production, operation and business development. In the future, the company will continue to focus on the company’s development strategy and actively explore new business transformation directions.
Intended to acquire 100% equity of Green Energy Huichong
The latest announcement disclosed by Jiangquan Industry on the evening of November 21 shows that the company’s non-public issuance plan no longer includes the acquisition of 100% equity in Xinhuo Technology, and the total amount of non-public issuance of shares has also been raised to no more than 453 million yuan.
According to reports, this time Jiangquan Industry intends to supplement the company’s liquidity through the non-public offering of funds, and mainly invest in the company’s operations of green energy and smart charging, develop new business, realize the diversified development of the company’s main business, and expand new profit growth. .
In order to cut into the new energy industry and implement business transformation, on November 21, Jiangquan Industrial signed a framework agreement with Daoheng Tongchuang, Li Xingmin, Zhongxin Tongchuang, Bodehengye, and Fandi Consulting. According to the framework agreement, Jiangquan Industry will purchase 100% of the equity of Green Energy Huichong. The initial estimated transaction price will not exceed 90 million yuan. The payment method for this transaction will be cash.
Jiangquan Industrial’s announcement shows that Green Energy Smart Charging is a national high-tech enterprise and a “specialized and special new” enterprise in Shaanxi Province. It is a collection of R&D, production and sales of charging and energy storage products, investment, construction and operation of charging stations, and a charging platform. A new energy eco-service provider integrated with big data management. It has three R&D and production bases in Xi’an, Mianyang, and Nanchong, and has established a R&D team with well-known electronic technology experts in the industry as the core. At the same time, Green Energy Huichong has set up marketing service centers in the six regions of Central China, North China, East China, South China, Southwest, and Northwest China. Green Energy Smart Charging is still in the stage of rapid development and needs funds to further expand its production scale, increase R&D investment, and increase market share.
As of September 30, 2021, the book balance of Jiangquan Industrial’s monetary funds was 33.435 million yuan. With less available funds and insufficient liquidity reserves, it is difficult to meet the company’s large capital needs for future business expansion and new business development.
Jiangquan Industry stated that this transaction is in line with the company’s development strategy, relevant national industrial policies and the development trend of market technology. Before the transaction, Green Energy Smart Charge does not belong to the same industry as the listed company. After the transaction is completed, the listed company will hold 100% of the company’s equity. The business scope of the listed company will be expanded, which is conducive to the continued operation of the listed company. The improvement of capabilities is conducive to optimizing the company’s capital structure and improving the company’s ability to resist risks.