On the evening of April 18, Taiyuan Lionhead Cement Co.Ltd(600539) sh ( Taiyuan Lionhead Cement Co.Ltd(600539) .sh) announced that after deliberation by the board of directors of the listed company, it was agreed to terminate the major asset restructuring of the acquisition of 59.99% shares of Hangzhou Quentin Technology Co., Ltd. (hereinafter referred to as “Quentin technology”).
On the same day, Taiyuan Lionhead Cement Co.Ltd(600539) released the annual report of 2021. In 2021, the company’s operating revenue was 466 million yuan, a year-on-year increase of 124.61%, and the operating cost was 319 million yuan, a year-on-year increase of 132.77%.
It is worth mentioning that the revenue of Taiyuan Lionhead Cement Co.Ltd(600539) 2021 mainly comes from Quentin technology. Quentin technology realized an operating revenue of 404 million yuan in the current period, accounting for 86.84% of the company’s total operating revenue.
termination of major asset restructuring
On June 21, 2021, the listed company convened the board of directors to purchase 59.99% shares of Quentin technology held by Fang Hebing, Liu Jiadong, Fang Linbin, Hangzhou Kunyang investment management partnership (limited partnership), he Rong, Zhang yuanfan and Bai Zhiyong by issuing shares and paying cash, and raise supporting funds.
Taiyuan Lionhead Cement Co.Ltd(600539) said that since the disclosure of the reorganization plan, the company and relevant parties have actively promoted the reorganization. In view of the failure to complete the relevant audit evaluation, due diligence and other work involved in the restructuring transaction plan as scheduled, the company failed to issue the notice of convening the shareholders’ meeting and announce the restructuring report and other relevant documents within six months of the first disclosure of the plan by the board of directors.
In addition, in view of the long duration of this reorganization, the relevant market environment, laws and regulations and policies have changed compared with the beginning of this transaction planning, resulting in significant uncertainty in continuing to promote this major asset reorganization.
On the other hand, the listed company said that due to the continuous spread of the global covid-19 pneumonia epidemic, which led to the decline of import efficiency and the increase of difficulty in goods preparation, the rise of logistics and storage costs caused by the scattered and frequent outbreaks of the epidemic in China, and the increase of operation investment caused by the changes in the market environment of the Internet e-commerce industry and the pattern of e-commerce platforms, the performance of the target company in 2021 did not meet expectationsp align=”center” style=”text-align:center;”> Source: screenshot of announcement
Therefore, due to the above factors, the parties to the transaction did not reach an agreement on the core terms of the transaction. After friendly negotiation between relevant parties and careful research and analysis, Taiyuan Lionhead Cement Co.Ltd(600539) decided to terminate this major asset restructuring.
Taiyuan Lionhead Cement Co.Ltd(600539) said that the restructuring had no impact on the production and operation of the listed company and had not led to significant adverse changes in the operating environment of the listed company from start to termination. Moreover, this reorganization has not yet formed a final plan. The termination of this reorganization has no material impact on the listed company, will not have an adverse impact on the existing production and operation activities and financial status of the listed company, and there is no situation that damages the interests of the listed company.
However, in the 2021 annual report, listed companies also mentioned that the company has obtained 40% equity of Quentin technology. According to the voting right entrustment agreement signed by the company with Fang Linbin and Liu Jiadong, the company has exercised the voting right corresponding to the 10.54% equity of Quentin technology held by Fang Linbin and Liu Jiadong. The company enjoys 50.54% of the voting right of Quentin technology and has effective control over Quentin technology. At the same time, in combination with the fact that the company has assigned key post managers to Quentin technology, the above measures can effectively ensure the company’s substantive control over Quentin technology. However, the company actually holds 40% equity of Quentin technology, and the shareholding ratio does not reach more than 50%, and the period for the exercise of the entrusted voting right is the earlier of 36 months after the date when the company and its controlled subjects obtain 51% or more equity of Quentin technology or the completion of the change of share transfer. If the company and its controlling subjects fail to further obtain the control of Quentin technology when the exercise period of the entrusted voting right expires, and the entrusted voting right will not be renewed, the company may face the risk of losing the control of Quentin technology.
revenue mainly depends on Quentin technology
On the same day, Taiyuan Lionhead Cement Co.Ltd(600539) released the annual report of 2021. In 2021, the listed company achieved an operating revenue of 466 million yuan, a year-on-year increase of 124.61%, and a net profit attributable to the parent company of 144529 million yuan, a year-on-year increase of 29.66%.
From the perspective of industry, during the reporting period, Taiyuan Lionhead Cement Co.Ltd(600539) main business income was mainly e-commerce service business income. Among them, Quentin technology realized main business income of 404 million yuan in this period, accounting for 86.84% of the total main business income of the listed company, and realized net profit attributable to the parent company of 374676 million yuan, a year-on-year decrease of 2.44%.
According to the annual report, Quentin technology, as a one-stop e-commerce service operator, is mainly engaged in e-commerce brand agent operation and distribution business in advantageous fields such as pet food, beauty care and skin care. It belongs to e-commerce service industry. Among them, pet ration products have become the business category focused by Quentin technology. Based on the mature distribution and operation experience of ziwi and Suli, Quentin technology has gradually become a well-known pet grain brand operator in the industry during the reporting period. The subsequent company’s goal will continue to dig into other relevant categories in the pet industry.
Taiyuan Lionhead Cement Co.Ltd(600539) said that since the company has established comprehensive brand incubation and operation capabilities, innovative marketing and promotion capabilities, resource integration and cross platform operation capabilities in the e-commerce service industry, the gross profit margin of e-commerce service business during the reporting period reached 33.33%, significantly higher than 17.81% of manufacturing businessp align=”center” style=”text-align:center;”> Source: screenshot of announcement
Due to the continuous high price of bulk commodities, the manufacturing and other businesses of listed companies are under significant pressure. By strengthening cost control, improving technological level and raising prices to downstream customers, listed companies strive to stabilize the business of this sector. In 2021, Taiyuan Lionhead Cement Co.Ltd(600539) manufacturing business realized a main business income of 61.011 million yuan, a year-on-year increase of 14.33%.
