Dongfang.com reporter Fang Xiang reported on April 13: Today, Shenzhen-listed company Yinyi Shares (000981) held a media communication meeting on the "Two-wheel Drive Development Strategy" to explain the acquisition of relevant assets of the American ARC Group (hereinafter referred to as "ARC").
Recently, Yinyi Shares announced that the company plans to non-publicly issue 558 million shares at 5.91 yuan/share for a price of 3.3 billion yuan to acquire 100% equity of Ningbo Haosheng, a wholly-owned subsidiary of Tibet Yinyi Holdings, the company's controlling shareholder Yinyi Holdings, thus indirectly holding the relevant assets of the American ARC Group (hereinafter referred to as "ARC"); at the same time, it plans to raise no more than 825 million yuan in supporting funds from Yinyi Holdings' non-public issuance of shares at 8.06 yuan/share to supplement the company's liquidity. After the acquisition is completed, Yinyi Shares will have dual main businesses of real estate and high-end manufacturing, becoming a comprehensive multinational group with outstanding main businesses, diversified development, and integration of industry and finance.
Regarding the acquisition of ARC, Yinyi shares said that it mainly values ARC’s world-leading technological advantages in the field of high-end manufacturing. By acquiring high-end manufacturing companies in Europe and the United States, it can not only bring technological breakthroughs to the domestic high-end parts industry, but also promote the transformation and upgrading of the company's industrial structure and achieve seamless connection between assets and capital markets.
Yinyi Shares said that after the acquisition is completed, it will use ARC as a platform to integrate upstream and downstream enterprises in the automotive safety system, extend the industrial chain, and create a two-wheel-driven development pattern of "real estate industry and high-end manufacturing".
The annual report recently released by Yinyi Shares shows that the operating income in 2015 was 8.459 billion yuan, an increase of 33.99% over the same period last year, and the net profit attributable to shareholders of the listed company was 527 million yuan. In 2016, the company will continue to accelerate sales and destocking, increase capital withdrawals, and continue to deepen the original development city layout and expand key projects to first-tier cities such as Shanghai, Beijing, and Shenzhen to achieve rapid project turnover and rapid sales, improve the economic benefits of the project, and enhance development potential.
Since last year, in order to further enhance the company's competitiveness in the capital market and improve profitability, listed real estate companies have entered new areas with development potential and room for growth and implemented industrial transformation. Industry insiders said that the era of shortage in China's real estate industry has passed, but the current logic of the entire industry has not changed. Enterprises still adopt a heavy-asset development model. High land prices and high capital costs make profits difficult and risky. Competition in the entire industry is fierce. In this fully competitive environment, some enterprises will definitely avoid the systemic risks caused by a single industry through diversified development and generate more profit points.
