A few days ago, Kunshan Jiahe Paper Products Technology Co., Ltd. (hereinafter referred to as: Jiahe Technology) announced that it is planning to acquire Vietnam Lisheng Packaging Co., Ltd. from Kunshan Suyu Paper Products Co., Ltd. by paying cash to purchase assets. 26% stake.
Actively explore overseas markets
Jiahe Technology was established in March 2001 and listed on the Beijing Stock Exchange at the end of 2022. The company's main business is the research and development, design, production and sales of paper packaging and display products. The main products can be divided into three categories: color printing, watermarking and cardboard. category.
According to the announcement information, Vietnam Lisheng Packaging was established on October 25, 2017, and is mainly engaged in the design, production and sales of paper printing and packaging products, and the production and sales of corrugated cardboard. As shareholders, Jiahe Technology and Suyu Paper held 25% and 45% of the shares of Vietnam Lisheng Packaging respectively before this transaction. After the transaction is completed, the proportion of shares held by Jiahe Technology will increase to 51%.
For this acquisition, Jiahe Technology stated that after the completion of this transaction, the company will obtain the control of Vietnam Lisheng, which will help the company to improve the overall operating scale and profitability, further strengthen the company's comprehensive competitiveness, and conform to the company's development strategy.
This transaction is still in the planning stage, and the final transaction plan, transaction price, etc. need to be further demonstrated and negotiated based on due diligence, audit or evaluation results, etc., and can only be determined after necessary decision-making and approval procedures are performed. greater uncertainty.
Continuously improve the scale of the enterprise
In fact, the pace of development of Jiahe Technology is not limited to overseas, it also attaches great importance to the expansion of the domestic market.
As early as September 2022, Jiahe Technology had acquired a 9% stake in the company's holding subsidiary Changshu Jiahe Paper Products Technology Co., Ltd. held by the minority shareholder Kunshan Changheyuan Enterprise Management Center (Limited Partnership) for 5.85 million. Equity accounted for 70%.
Jiahe Technology said that this transaction is conducive to optimizing the company's strategic layout, helping to integrate company resources, promote the rapid development of subsidiaries, and improve the company's overall strength, which will have a positive impact on the company's future financial status and operating results.
In addition, Jiahe Technology also announced in December 2022 and March 2023 that its wholly-owned subsidiary, Guangde Jialian Packaging Technology Co., Ltd., would increase its capital by RMB 45 million and RMB 60 million. Up to now, the registered capital of Guangde Jialian has increased from 15 million yuan to 120 million yuan.
Although Jiahe Technology stated in the 2022 annual performance report released in February that due to macroeconomic fluctuations and the repeated factors of the new crown pneumonia epidemic around Jiangsu, Zhejiang and Shanghai, operating income decreased by 22.94% compared with the same period last year, and the net profit attributable to shareholders of listed companies A year-on-year decrease of 22.77%.
However, judging from the investment in the three holding subsidiaries, Jiahe Technology has always looked at the future market and the development of the industry with a positive attitude, and has been trying to promote the development of the enterprise by expanding production capacity and expanding the market. As it said in the prospectus: "In recent years, with the rapid development of the company's business scale, the demand of customers in the downstream market has also been increasing, which has put forward higher requirements for the company's asset scale, product categories and product quality. The company urgently needs to effectively expand the company's production capacity through the implementation of the project to meet future market demand and prepare for future sustainable development."
It is believed that with the gradual improvement of the national economy and market environment, Jiahe Technology will be able to seize the opportunity, accumulate a lot of knowledge, and usher in new development.