Feikai Materials intends to invest 33.6 million yuan to acquire a 100% stake in Jiayu Coatings

According to the announcement, on January 21, 2015, the Company signed an equity transfer agreement with Jiayu
Coatings
(Huizhou) Co., Ltd. with Jiayu Hong Kong. Upon completion of this equity acquisition, Jiayu Coatings (Huizhou) Co., Ltd. will become a wholly owned subsidiary of Shanghai Feikai Photoelectrelectrron Materials Co., Ltd. and be incorporated into the consolidated financial statements of the Company.
It is understood that On October 29, 2014, Feikai Materials signed a Letter of Intent for Equity Acquisition with Jiayu Coatings Hong Kong Limited on the acquisition of shares, with the intention of acquiring a 100% stake in Jiayu Coatings (Huizhou) Co., Ltd. with its own funds.
Jiayu Coatings (Huizhou) Co., Ltd. registered capital of 10 million Hong Kong dollars, the production and sale of paint,
paint
, Tianna water, solvents and other chemical products, products sold in domestic and foreign markets. Jiayu Coatings (Huizhou) earnings are stable. The Company's 2013 operating income was RMB878.94 million and net profit was RMB128.1 million, while operating income in the first three quarters of 2014 was RMB6,041.2 million and net profit was RMB18,31 million. As of the end of September this year, the company's total assets of 10.9772 million yuan, net assets of 889.46 million yuan.
said the company intends to establish a production base in the Radiation Pearl River Delta region through acquisitions to improve the company's overall competitiveness. The acquisition is in line with the company's development strategy and is conducive to further enhancing the company's overall competitiveness and profitability, so as to ultimately maximize the interests of the company and all investors. After the signing of the letter of intent, the work needs to be further analyzed, evaluated and implemented, and the feasibility analysis of the project, the project is not expected to have a significant impact on the company's 2014 operating results.
, which was listed on the Shenzhen Stock Exchange GEM in October 2014, is a leader in the segment of ultraviolet curing materials (fibre optic coatings) for fiber optic cables. The company's existing UV-cured fiber optic cable coating material production capacity of 5000 tons / year, is the main supplier of ultraviolet cured fiber optic cable coating materials, breaking the long-term monopoly of overseas multinational enterprises in this field of high-end market. In 2011, 2012 and 2013, the main business income was RMB203.6 million, RMB261.4 million and RMB323.2 million, respectively, and net profit was RMB4245.386 million, RMB4665.326 million and RMB6543.692 million, respectively.
Jiayu
Coatings Company
is a professional research and development, production and sales of
-industrial coatings
and water-based environmental protection coatings of large-scale high-tech enterprises, in Hong Kong, Macao, the Pearl River Delta region has a high market share. By acquiring Jiayu Coatings (Huizhou) Company, Feikai Materials will help Feikai Materials rapidly develop the Pearl River Delta market and increase its market share.