The hottest golden cup electrician merged with Wuh

Jinbei Electric Co., Ltd. merged with Wuhan second line to build a cable leader, with high performance in the first three quarters of this year

Changjiang business daily news ● Changjiang business daily Shen yourong

regional cable leading enterprise Jinbei Electric Co., Ltd. is accelerating its merger and acquisition and focusing on building a cable leader

the night before last, Jinbei electrician released the revised draft of the restructuring plan. The company plans to acquire 79.33% of the equity of Wuhan second wire and cable Co., Ltd. (hereinafter referred to as Wuhan second line) by issuing shares and paying cash, with a transaction price of 752million yuan

this restructuring began at the end of February this year. On March 8 this year, Jinbei electrician disclosed the restructuring plan. In this revised draft, the supporting fund-raising content is deleted

according to the public data, Wuhan second line is a professional enterprise producing wires and cables. Its product brand "Feihe" is well-known in the industry and ranks first in the market share of Hubei

the acquisition of Wuhan second line will bring benefits to Jinbei electric. The counterparty promises that from 2019 to 2021, the net profit of Wuhan second tier will not be less than 83million yuan, 86million yuan and 89million yuan respectively. Last year, the net profit of Jinbei electrician (net profit attributable to shareholders of listed companies, the same below) was 133million yuan. If Wuhan second-line performance commitment is successfully fulfilled, the profitability of Jinbei electrician will be greatly improved. Yesterday afternoon, a securities analyst told Changjiang Business Daily that at present, the concentration of China's cable industry is very low, and the top ten enterprises in the industry account for less than 10% of the domestic market share. Jinbei electrician and Wuhan second line are regional leaders in Hunan and Hubei respectively. After the transaction is completed, Jinbei electrician will become the industry leader

Changjiang business daily found that in recent years, Jinbei Electric has accelerated its M & A and expansion to consolidate its industry position

wind data shows that since 2015, Jinbei electrician has successively purchased Sichuan cable, Xinxin cable, Jinbei electromagnetic cable, Jinbei tower brand and other industrial enterprises, and the company has taken this opportunity to make a nationwide market layout

Jinbei electrician has a good business performance. In the first three quarters of this year, the company achieved a net profit of 141million yuan, a year-on-year increase of 27.93%

acquisition of Wuhan second line in two steps

the history requires that the structural components can be reconciled for 5 years and implemented in two steps. Jinbei electrician has long loved Wuhan second line and is sincere in its acquisition

according to public information, Wuhan second line was established in 1980 as a collective owned enterprise under the jurisdiction of Wuhan wire and cable factory. In 1998, Wuhan second tier was restructured into a joint-stock cooperative system and changed into a limited company in 2005. At that time, in addition to the shares held by the trade union committee, 48 natural persons held the second tier capital contribution of Wuhan (297 natural persons actually held shares)

2017, Wuhan second tier completed the confirmation of rights, and its shareholders were 574 natural persons

perhaps, the confirmation of Wuhan second line is to cooperate with the acquisition of Jinbei electrician. Wuxueyu, the actual controller and chairman of Jinbei electrician, once said publicly that Jinbei electrician has been in contact with Wuhan second line for 5 years and has finally been recognized by Wuhan second line for Jinbei electrician

in January this year, Jinbei electrician began to purchase Wuhan second line. However, the first step was not to purchase directly by the company, but to buy shares by wuxueyu, the actual controller of the company

specifically, 48 shareholders jointly held by Changsha and transferred by Hunan asset management transferred part or all of their contribution shares respectively, of which 50% of the equity was transferred by senior managers and 70% and 100% of the equity was transferred by middle-level managers and ordinary employees respectively. After the transfer, Changsha Gongju and Hunan asset management held 50.03% and 29.30% of the equity of Wuhan second tier respectively, and Changsha Gongju became the controlling shareholder of Wuhan second tier

Changsha Gongju was established on october26,2018. Its shareholders are wuxueyu and zhouzuqin, of which wuxueyu holds 58.29% of the shares. Thus, wuxueyu became the actual controller of Wuhan second line

at the end of February this year, wuxueyu carried out the second step without stopping, that is, transferring his second line equity in Wuhan to Jinbei electrician

according to the newly disclosed restructuring plan, Jinbei electrician acquired 79.33% of the equity of Wuhan second tier by issuing shares and paying cash. After the completion of the transaction, Wuhan second tier will become a holding subsidiary of the company

in this acquisition, the 100% equity pricing of the underlying assets requires a low conversion rate of RMB 957million and a premium rate of 52.59%. Changsha jointly promises that the net profit realized by the underlying assets will not be less than 258million yuan in the next three years

Jinbei electrician said that the main products of Wuhan second line are divided into four categories: wires for electrical equipment, power cables, bare wires and special wires and cables. It can produce wire and cable products of more than 60 series and thousands of varieties and specifications. It is one of the top 100 enterprises in China's cable industry. Its product brand "flying crane" has a high reputation in the wire and cable industry. After the completion of the transaction, Jinbei electrician will achieve complementary and coordinated development with Wuhan second line to enhance the competitiveness of the company

Wuhan second tier has good business performance. From 2017 to the first eight months of this year, its operating revenue was 1.819 billion yuan, the equipment used to measure the size of torque was 1.888 billion yuan and 1.295 billion yuan respectively, and the corresponding net profit was 92.2462 million yuan, 90.9994 million yuan and 71.9216 million yuan

however, it is somewhat surprising that the performance commitment made by Changsha Gongju is lower than the current net profit realization of the underlying assets

operating cash flow increased by 1.7 times

Jinbei electrician continued to increase its industrial M & A expansion, and its competitiveness was also continuously enhanced

Jinbei electrician was listed on the small and medium-sized board of Shenzhen Stock Exchange on December 31, 2010. It is a leading enterprise in Hunan cable industry. At present, the company has a rich product structure and a complete range of products, forming a serialized, large-scale and complete product structure dominated by hundreds of varieties and nearly 10000 specifications of traditional products in five categories, including electromagnetic wires, power cables, bare wires, wires for electrical equipment, special wires and cables, and supplemented by new products, such as aluminum alloy cables, rail transit cables, irradiation cables, high-temperature cables, locomotive and vehicle cables

Jinbei electrician once planned to enter the field of new energy, but achieved little. Since 2017, the company has gradually divested new energy assets and focused on the main business of wires and cables

in recent years, Jinbei Electric has been expanding its industry through mergers and acquisitions. According to wind data, in recent years, the company has successively acquired 100% equity of Sichuan cable, 21% equity of Xinxin cable, 10% equity of Jinbei electromagnetic cable and 5% equity of Jinbei tower. At present, the company is preparing to bid for 15% equity of Jinbei electromagnetic cable

through acquisition, Jinbei electrician's market continues to expand, especially power cables. At present, it has completed the layout of Hunan, Hubei, Chongqing, Anhui, Hebei, Gansu, Ningxia, Guangxi, Guizhou and other places. The company has also won the bid for Sinopec Gulei refining and chemical integration project, and joined hands with all bureaus of CSCEC system to become its strategic cooperation supplier

Jinbei electrician has many well-known brands. In addition to its own Jinbei brand, the "tapai" cable of Jinbei tapai, its holding subsidiary, was founded in 1939. With 80 years of history, it has built a well-known brand of "the first cable in Bashu". In addition, if the second tier acquisition of Wuhan is completed, the company will add the famous brand Feihe

with the market expansion, the business performance of Jinbei electrician has also increased rapidly. In the first half of this year, the sales of the company's power cable products increased by 48.81% year-on-year, the sales of special wires and cables increased by 26.21% year-on-year, the sales of markets outside the province increased by 41.17% year-on-year, and the sales of insulated overhead wires reached a record high

in the first three quarters of this year, the company achieved an operating revenue of RMB 4.159 billion, a year-on-year increase of 19.31%, and a net profit of RMB 141million, a year-on-year increase of 27.93%. The net operating cash flow of the company was 169million yuan, a year-on-year increase of 170.50%