Zhui Technology, Which Has Over 1 Billion 700 Million Revenue Last Year, Was Captured By 1 Billion 594 Million Of ABC'S Parent Company.

In the evening of May 8th, the ABC parent company of the famous local children's clothing brand, the start Limited by Share Ltd (hereinafter referred to as the "start share"), announced that the company intends to buy shares of Zhui science and technology jointly owned by Liu Zhi Heng, Ma Xiuping, Shenzhen Changyu and Longyan Hao Jia in the way of issuing shares, convertible bonds and paying cash.

Analysts believe that the start of the acquisition of shares of Zhui technology will expand foreign sales channels, thickening profit levels, Zhui technology also promised that the net profit of 2019-2020 years is not less than 150 million yuan and 200 million yuan.

Shenzhen Zhui Technology Co., Ltd., with the registered capital of 5 million yuan, covers the technological development, sales and online sales of electronic products, computers and peripheral products, online sales of clothing, mobile phones and supporting products, domestic trade, electronic business, business management consulting and other fields.

As of 2017, 2018 and the first quarter of 2019, Zhui technology achieved revenues of 1 billion 756 million yuan, 1 billion 755 million yuan and 530 million yuan respectively, with net profit of 76 million 153 thousand and 400 yuan, 74 million 390 thousand and 700 yuan and 17 million 553 thousand and 100 yuan respectively.

According to the agreement, the paction takes March 31, 2019 as the pre assessment base date, and the target company's 100% equity interest is estimated at 1 billion 800 million yuan, and its 88.5714% equity trading consideration is initially determined to be about 1 billion 594 million yuan. The parties agreed to hire an appraisal agency with securities business qualification to evaluate the value of the 100% Party's rights of Zhui technology, and negotiate the final paction price based on the value of the assessed equity.

The issue price of the issue of shares purchased is 8.51 yuan / share, which is no less than 90% of the average trading price of the company's stock market on the first 120 days of the first board resolution announcement date.

The initial shares will be raised to no more than 10 specific investors, and the total amount of the matching funds will not exceed 100% of the paction price to be purchased through the issue of shares and convertible bonds, and the number of shares issued will not exceed 20% of the total share capital of the listed company before the paction.

The number and price of the issued shares will be determined in accordance with the relevant provisions of the China Securities Regulatory Commission.

The matching funds are to be used to pay the cash consideration, paction costs and supplementary liquidity of the paction, and the amount used to supplement the liquidity of the target company shall not exceed 50% of the total amount of the matching funds.

The specific purpose and amount of the fund-raising fund will be disclosed in the restructuring report.

This paction will help to achieve complementary advantages between starting stocks and target companies, and play a synergistic effect in brand management and capital.

After the paction is completed, the shares will be launched overseas through the sales channel of the target company, and actively open up overseas markets.

The target company of the paction has strong profitability and better prospects for development. After the completion of the paction, it is expected that the scale and profitability of the listed company will be significantly improved. At the same time, due to the synergy effect between the listed company and the target company, a new profit growth point will be generated, which will help to improve the assets quality and profitability of the company, improve the financial position and enhance the ability of continuous operation, in line with the interests of the company and all shareholders.

After the initial shares are applied to the Shanghai stock exchange, the company's stock will resume trading from May 9, 2019.

Public information shows that, as a well-known brand operator in the domestic children's industry, starting stock is mainly engaged in the design, research, development, production and sale of children's shoes, children's clothing and children's clothing accessories. It is committed to providing children with 3-13 years of age with a complete range of styles and styles.

At present, the company's "ABC KIDS" is a well-known brand of children's clothing in China. Children's clothing products include T-shirts, trousers, sweaters, skirts, jackets, down garments, etc. children's shoes include sports shoes, leather shoes and cloth shoes. At the same time, the company has independently developed multi-functional children's shoes such as shock absorption, odour prevention, water prevention and so on. The rich product line can provide consumers with one-stop shopping and full category shopping for children's clothing.

In addition, the company has also undertaken some OEM business of adult shoes. Its main customers are foreign trade companies.

In the 2018 year, the starting share realized total business income of 1 billion 400 million, up 4.4% over the same period last year; net profit attributable to the owners of the parent company was 180 million, down 7.1% compared with the same period last year; earnings per share were 0.38 yuan.

During the reporting period, the gross profit margin of the company was 35.6%, an increase of 0.6 percentage points over the previous year, and the net interest rate was 12.9%, down 1.6 percentage points from the previous year.

During the reporting period, sales expenses increased by 15.9% over the same period last year, which affected the growth of profits. Besides, non recurring gains and losses had a greater impact on initial share performance, totaling 38 million 57 thousand yuan, of which the government subsidy was 37 million 982 thousand yuan.

After deducting the non recurring gains and losses, the net profit of the returned parent was 140 million yuan, down 11.8% compared to the same period.

Net profit growth is less than that of revenue growth, which is mainly due to a 1.9 percentage point increase in the period cost.

From the perspective of business structure, "children's shoes" and "children's clothing" are the main sources of business income.

Specifically, "children's shoes" business income is 770 million, revenue accounted for 55.8%.

"Children's wear" business income is 470 million, revenue accounted for 34%.

"Shoes OEM" business income is 130 million, revenue accounted for 9.1%.

From the perspective of profit contribution, gross profit of children's shoes is the most important.

During the reporting period, the overall gross profit rate of the enterprise was 35.6%, of which "child shoes", "children's clothes" and "OEM" Maori contributed 59.8%, 36.2% and 3.1% respectively, and "child shoes" contributed greatly to the gross profit.

The gross profit rates of "children's shoes", "children's clothing" and "shoes OEM" are 38.5%, 38.1% and 12.3% respectively.

According to the latest earnings report of the initial shares, in the first quarter of 2019, the total revenue of the initial shares was 316 million yuan, an increase of 19.11% over the same period, and the net profit attributable to shareholders of listed companies was 46 million 608 thousand and 400 yuan, up 47.63% over the same period last year.