Beijing Compass Technology Development Co.Ltd(300803) ( Beijing Compass Technology Development Co.Ltd(300803) ) announced on March 16 that it plans to participate in the bankruptcy and reorganization of wechat securities, invest 1.5 billion yuan to obtain 100% equity of the restructured wechat securities and become its controlling shareholder. Up to now, the draft reorganization plan still needs to be voted by the creditors’ meeting and is subject to the ruling and approval of Shenyang intermediate people’s court.
Looking back on the previous situation, wechat securities caused significant operational risks due to its bond trading business, which was seriously insolvent and unable to pay off its due debts. On July 16, 2021, Shenyang intermediate people’s court ruled to accept the bankruptcy reorganization case of Wangxin securities Beijing Compass Technology Development Co.Ltd(300803) signed up in September 2021 to participate in the recruitment and selection of investors in the bankruptcy reorganization of wechat securities, and completed the submission of application materials, payment of interest money, submission of investment plan, payment of investment deposit and other work to the administrator of wechat securities according to relevant requirements. After the market-oriented selection process, Beijing Compass Technology Development Co.Ltd(300803) was determined as the reorganization investor on February 10, 2022.
According to the draft reorganization plan formulated by the manager of wechat securities, the rights and interests of joint venture group, Shengjing financial holding and Hengxin leasing as the original shareholders of wechat securities in wechat securities will be adjusted to zero, Beijing Compass Technology Development Co.Ltd(300803) will invest RMB 1.5 billion in the reorganization investment to pay off the debts of wechat securities and obtain 100% equity of the restructured wechat securities. The above draft reorganization plan needs to be voted by the creditors’ meeting and is subject to the ruling and approval of Shenyang intermediate people’s court. After the implementation of the reorganization plan of wechat securities, the listed company will hold 100% equity of the restructured wechat securities.
According to the audit report of the target company, in 2020 and 2021, the target company achieved a net profit of -611792 million yuan and -508 million yuan respectively, with losses for many consecutive years. As of the end of the reporting period, the net assets of the subject company were -4.133 billion yuan, which had been seriously insolvent. After the completion of the bankruptcy reorganization, according to the reference audit report of the subject company, the net assets of the subject company will be increased to 261 million yuan by the end of the reporting period.
Beijing Compass Technology Development Co.Ltd(300803) believes that the historical financial data cannot reflect the real value of the target company because the target company has been in abnormal operation in recent years. The target company has relatively complete business qualifications. Before the occurrence of business risks in 2018, its main businesses include securities brokerage business, securities self operated investment business, investment banking business and asset management business.
Statistics show that Beijing Compass Technology Development Co.Ltd(300803) is mainly engaged in financial information service business, advertising service business and insurance brokerage business. In 2007, Beijing Compass Technology Development Co.Ltd(300803) was listed on the new third board, and in 2019, Beijing Compass Technology Development Co.Ltd(300803) was listed on the gem. “After the company successfully obtains the control right of the target company and the securities dealer license through this transaction, it can be organically combined with the main business of the company’s own development and sales of securities tool software, so as to improve the synergy and the overall operating efficiency of the company.” Beijing Compass Technology Development Co.Ltd(300803) indicates.
Beijing Compass Technology Development Co.Ltd(300803) also mentioned that the core purpose of this transaction is to further improve the business layout and enhance the core competitiveness of the company. Relying on its position in the field of stock trading software, it will change the original business model of cooperation with external securities companies into direct empowerment of subordinate securities companies and further open up the upstream and downstream industrial chain, Therefore, the field of securities brokerage business is the business segment with the most synergistic effect between Wangxin securities and the company’s own business. However, in the context of increasingly fierce competition in the securities industry, there is some uncertainty about whether the development of the subject company, especially the development of securities brokerage business, can reach the expected level in the future.
\u3000\u3000 “After the completion of this transaction, the target company will fully resume the normal operation of all businesses as soon as possible with the active support and help of the company. Nevertheless, the problems such as talent shortage, weak customer base and limited market influence caused by long-term poor operation of the target company may still exist, and the target company is still facing the risk of short-term loss after the completion of the transaction.” Beijing Compass Technology Development Co.Ltd(300803) further points out.
