Since 2021, the capital operation of secondary new shares has been frequent after listing. On January 9, Yachuang Electronics (301099) announced that the company planned to take 55% of the equity of Shenzhen Yi Hytera Communications Corporation Limited(002583) Co., Ltd. (hereinafter referred to as “Yi Hytera Communications Corporation Limited(002583) “), which is less than two months from the listing of Yachuang electronics. Jialian technology, which has just been listed for one month recently, also disclosed that it wanted to acquire assets. Through combing, the reporter of Beijing Business Daily found that among the secondary new shares listed in 2021, Cofoe Medical Technology Co.Ltd(301087) planned to acquire less than half a month after listing, which is a typical case. Behind the acquisition of assets by new shares, the performance of many stocks is under pressure.
Expansion of new share acquisition
The new share acquisition case was further expanded.
On January 9, Yachuang electronic disclosed that the company purchased 55% equity of Yi Hytera Communications Corporation Limited(002583) with its own funds or self raised funds, and the main business of the subject Yi Hytera Communications Corporation Limited(002583) is the agency distribution of electronic components and semiconductor technology R & D and sales services.
Yachuang electronics said that the customer and supplier resources of Yi Hytera Communications Corporation Limited(002583) are consistent with the business development strategy of the company’s agent distribution. The two sides can realize complementary resource advantages, share products and customers, generate synergy, further expand the market share of passive components in the company’s automotive electronics business, enhance the industry influence and improve the company’s profitability.
The reporter of Beijing business daily noted that the listing time of Yachuang electronics is not long. It was listed on the gem on November 22, 2021. Now it has been listed for less than two months.
Since 2021, there have been many cases of rapid M & A shortly after the listing of new shares. Recently, Jialian technology announced that the company signed the intention agreement with Zhejiang Home Depot Technology Co., Ltd. (hereinafter referred to as “Home Depot”) and Ruan Jingang on January 7, 2022. The company intends to acquire Home Depot in cash, and the company plans to hold no less than 75% of the shares of home depot.
Jialian technology is also a “newcomer” in the A-share market. Jialian technology is an enterprise engaged in the R & D, production and sales of plastic products and biodegradable products. It landed on the gem on December 9, 2021.
Just after the full moon of listing, Jialian technology was eager to engage in merger. What kind of company was the subject matter attracted attention. The target home depot was established on June 15, 2006 with a registered capital of 34.68647 million yuan. It is a company listed on the new third board.
Home depot is engaged in the R & D, production and sales of pulp molded tableware series products and was listed on the new third board on December 12, 2018. On September 10, 2021, home depot deliberated and passed the proposal on the termination of delisting of the proposed company’s shares in the National SME share transfer system. Subsequently, due to the consideration of long-term development strategy and the current development situation of capital market, home depot terminated the delisting procedure.
If the acquisition is completed, home depot will realize curve listing. However, the Beijing Business Daily reporter noted that Home Depot’s profitability declined significantly. According to the financial data, from January to June 2021, Jialian technology realized a net profit loss attributable to the shareholders of the listed company of about RMB 1.3781 million, from profit to loss year-on-year.
Jialian technology said that after the completion of the transaction, the company will become the controlling shareholder of home depot, aiming to give full play to their advantageous resources, expand the company’s business sector and market competitiveness, and help speed up the company’s layout in the field of fully degradable products. For company related issues, the reporter of Beijing Business Daily called Jialian technology securities department for an interview, but no one answered the other phone.
On November 7, 2021, at that time Cofoe Medical Technology Co.Ltd(301087) announced that the company planned to acquire 100% equity of acorn Trading (Shanghai) Co., Ltd. and its related intellectual property rights in its affiliated companies with a total price of no more than 177 million yuan, and planned to control Jirui medical devices (Shanghai) Co., Ltd. at a price of 50.270162 million yuan. Cofoe Medical Technology Co.Ltd(301087) was listed on the gem on October 25, 2021, that is, less than half a month after listing, Cofoe Medical Technology Co.Ltd(301087) started M & A.
In contrast, Jiangsu Tongli Risheng Machinery Co.Ltd(605286) capital operation is bolder and requires cross-border acquisitions. Jiangsu Tongli Risheng Machinery Co.Ltd(605286) is mainly engaged in the R & D, production and sales of elevator parts and elevator metal materials. It was listed on March 22, 2021. Six months after listing, the company will conduct M & A. According to the plan, Jiangsu Tongli Risheng Machinery Co.Ltd(605286) plans to issue shares and pay cash to acquire 51% equity of Beijing Tianqi Hongyuan new energy technology Co., Ltd. the target Beijing Tianqi Hongyuan new energy technology Co., Ltd. is mainly engaged in chemical energy storage and new energy power station business. This transaction is a cross industry M & A.
multi share current performance under pressure
In the opinion of Xu Xiaoheng, an investment and financing expert, although acquisition is a normal phenomenon in the capital market, it can not help but cause investors\’ concern that it will be acquired soon after listing. It is not ruled out to “dress up” the financial report through extended M & A in the case of declining performance.
Through combing, the reporter of Beijing Business Daily found that many new shares are eager to acquire, and the performance behind them is now under pressure. Taking Jialian technology as an example, from January to September 2021, Jialian technology realized an operating revenue of 905.962 million yuan, a year-on-year increase of 22.32%; The corresponding attributable net profit was 48.8388 million yuan, a year-on-year decrease of 39.21%; The net profit after non deduction realized in the current period was 42.6897 million yuan, a year-on-year decrease of 42.84%.
Jialian technology expects to realize an annual revenue of about 1.301 billion-1.602 billion yuan in 2021, an increase of 26.81% – 56.06% over 2020; The net profit after deducting non-profit was 59.0454 million-72.6649 million yuan, a decrease of 33.8% to 18.52% over the same period.
Wang Chikun, an independent economist, said in an interview with the Beijing Business Daily that Jialian technology’s acquisition of Home Depot shows Jialian technology’s desire and operating pressure to improve performance.
Cofoe Medical Technology Co.Ltd(301087) also has performance pressure. According to the data, the operating revenue of Cofoe Medical Technology Co.Ltd(301087) in the first three quarters of 2021 was about 1.698 billion yuan, a year-on-year decrease of 2.51%; The corresponding attributable net profit was about 304 million yuan, a year-on-year decrease of 8.13%. The net profit after deduction of non-profit realized in Cofoe Medical Technology Co.Ltd(301087) in the first three quarters was about 279 million yuan, a year-on-year decrease of 11.67%.
In contrast, Jiangsu Tongli Risheng Machinery Co.Ltd(605286) and Yachuang Electronics’ attributable net profit increased year-on-year in the first three quarters of 2021.
Bai Wenxi, chief economist of IPG China, believes that many new shares are restructured shortly after listing. In fact, these are often to find good M & A objects before listing, and even have reached a tacit understanding to start M & A immediately after listing. This does not violate the mandatory provisions of M & A of listed companies, and can strengthen the main business and industrial foundation for listed companies, This is the positive effect of restructuring just after listing. However, the restructuring just after listing also reflects the anxiety of these listed companies that they are not confident about the sustainable development and subsequent growth of their main business.
Xu Xiaoheng said that there is nothing wrong with the rush to refinance, M & A and other capital operations after the listing of new shares. However, it should also be noted that the current performance of new shares faces frequent risks. Whether some new shares cover up the company’s own problems by means of asset acquisition and replacement does not rule out the possibility of manufacturing related subject concepts through acquisition, so as to improve the stock price. Therefore, investors need to carefully screen and choose sub IPO investment with real growth potential.
“After the listing of some secondary new shares, the acquisition of \’excessive action\’ is also vulnerable to regulatory inquiries, which rings an alarm for the secondary new shares that are rapidly planning to restructure,” Xu Xiaoheng said.
(source: Beijing business daily)
