South China Bio acquires a 54% stake in Yuantai Biotech

From the traditional media to "biopharmaceuticals and energy conservation and environmental protection", to "biomedicine, energy conservation and environmental protection and fund management", South China Bio in recent years through restructuring changes in the main business, the company's stock has also experienced from "The Beatles wear a hat" to "take off the star off the hat" process, now more than 4 months after the suspension of trading, South China Bio once again threw out a major asset restructuring draft.
According to the Major Asset Purchase Report (Draft) disclosed on the evening of December 3, Nanhua Bio intends to purchase a 54% stake in Hunan Yuantai Biotechnology Co., Ltd. (hereinafter referred to as Yuantai Bio) at a cash payment method of 51.3 million yuan. The value of the underlying income method increased by 389.57% over the total equity assessment of the shareholders of its parent company's statement caliber.
As of September 30, Nanhua Bio-Home's net assets were -15.2217 million yuan, and if the net assets attributable to shareholders of the parent company at the end of 2017 remained negative, the Company's shares may be warned of the risk of de-marketing.value-added ratio of the target reached 389.57
the acquisition of Yuantai Bio, South China Bio using the income method of the evaluation results. As of June 30, 2017, the value of Yuantai Bio's 100% equity in accordance with the earnings method was 95.7699 million yuan, an increase of 76.2078 million yuan over the total equity assessment of the shareholders of its parent company's statement caliber, with a value-added rate of 389.57 percent. After negotiations, the final transaction price of 54% of Yuantai Bio's shares was 51.3 million yuan.
South China Bio mentioned in the acquisition plan that Yuantai Bio is in the field of cell immunotherapy, with revenue of RMB24,124.8 million in 2016 and net profit of RMB83.94 million, and net profit of RMB3.244 million in the first half of 2017 of RMB17.7203 million. For the acquisition, South China Bio said that the target area of cell immunotherapy has good prospects for development, through this transaction, to help enhance the company's profitability and risk resistance, for the company's future performance to provide a new growth point.
However, for South China Bio, which is mainly engaged in stem cell storage, energy conservation and environmental protection, and fund management, Yuantai Bio is located in a much different field of cell immunotherapy from its current stem cell storage business. South China Bio also said that if the acquisition is successful, there is also a risk of business integration.
"Daily Economic News" reporter also noted that South China Bio in the announcement admitted that the transaction target asset evaluation value-added rate is high, and the other party did not make compensation arrangements for the future performance and impairment of the transaction target, the transaction may be due to the integration effect failed to meet expectations, the target company project research and development effect failed to meet expectations, trading target performance fell sharply and other risks.
for the non-agreed performance compensation matters, "Daily Economic News" reporter called South China Bio, the company's director said "at that time to talk about ... It's not clear exactly what to say.As of the end of September, net assets were negative
data show that in 2014 and 2015, South China Bio mainly engaged in the operation of China Computer News, but in recent years, the traditional publishing media by the new media, its main media business in a loss-making state, and because of two consecutive years of negative net profit, the company's stock was implemented de-market risk warning. In the second half of 2016, it spun off its traditional paper media business and changed its business to a dual-main business model of "biopharmaceuticals and energy conservation and environmental protection", turning a profit in 2016. But after 2017, South China's bio-performance has gone downhill again. According to the third-quarter 2017 report, the company's net profit for the period From January to September this year was RMB20,490.8 million, and as of September 30, the company's net attributable assets were RMB1,522.17 million.
daily economic news reporter noted that according to the relevant rules, if The South China Bio's net assets as of the end of 2017 are still negative, then the company's shares have a risk of de-marketing warning.
South China Bio also mentioned in the acquisition plan, if the implementation of this transaction, the underlying company's profitability is not enough to make up for the increase in the company's financial expenses, and the company's original business profitability can not be effectively improved, then the company has the possibility of consecutive losses in the coming year, the company's net assets difficult to turn positive. On the relevant issues, South China Biological Secretary only said "please pay attention to the company's subsequent announcement." (Daily Economic News)