The two main businesses continued to shrink, and profits declined year after year.
According to the announcement of Digital China, it will sell its distribution business to Shen Xin Taifeng (000034. SZ), domestic A-share listed company. The transaction cost is RMB 406,543.8+million, which is about 65,438+03 times of the net profit of Digital China distribution business in 2065,438+04 (RMB 3,654.38+05). After the transaction is completed, Digital China Holdings Limited will become a complete service and internet company.
According to the data, Taifeng is mainly engaged in telephone production and marketing and feed production. In recent years, due to the rapid expansion of mobile phone users and the overall decline of the feed industry, the production and sales of the company's two main businesses, telephone and feed products, have continued to shrink, resulting in pressure on operations and a downward trend in profits.
Before the above fixed increase, Wang Xiaoyan was the actual controller of Shen Xin Taifeng. After the fixed increase is completed, Guo Wei and his concerted actions will hold 28. 19% of the shares of Shen Xin Taifeng and become the actual controller of Shen Xin Taifeng in one fell swoop.
According to the distributor, Digital China sold its declining distribution business with PE of 1.3 times, which was a good deal. At present, the average market valuation of issuing companies is 8 times.
A-share listed in disguise, and its share price rose by 5.63%.
After the completion of the transaction, Digital China listed the IT product distribution business on the A-share market in disguise.
Digital China officially responded to the media that after the listing of domestic A shares, its distribution business will have an independent capital platform and become a 100% domestic company. Digital China will vigorously develop high value-added and high-growth businesses such as smart city (Internet city service), Internet agriculture, Internet manufacturing, Internet supply chain and Internet finance.
Digital China Holdings said that with strong technology accumulation, extensive urban coverage and leading industry influence, they will usher in unprecedented development opportunities. After the successful completion of the transaction, Digital China will give back to investors in the form of large dividends.
According to the announcement, the net proceeds from the sale of Digital China is HK$ 4.67 billion, of which HK$ 3.5 billion will be distributed in special cash of HK$ 3.2 per share, and the remaining 25% will be used for the company's strategic investment and daily working capital (each accounting for 65,438+02.5%).
According to the information consulted by the reporter, the IT distribution business is currently the main business of Digital China Holdings, accounting for about 84% of the company's total revenue, but its revenue and net profit have declined for three consecutive years, with a gross profit of only 5%. According to industry insiders, the poor profit quality of distribution business has become a burden affecting the valuation of Digital China.
Therefore, despite the spin-off of 80% of the business, the share price of Digital China still rose sharply, with the intraday increase exceeding 10%. At the close, it still rose by 5.63%.