On April 20, Sibao technology announced that in order to consolidate and further enhance the company's competitive advantage in the silicone rubber industry, enrich and improve the company's industrial layout, and enhance the company's profitability, the company and its wholly-owned subsidiary Chengdu Sibao New Material Co., Ltd. (hereinafter referred to as "Sibao new material") intend to acquire 100% shares of Chengdu Tuoli Technology Co., Ltd. (hereinafter referred to as "Tuoli technology") in cash Right, the transaction consideration is RMB 255 million (before tax).
As the only listed company in China that integrates the production, R & D and manufacturing of special production equipment for silicone room temperature glue, Sibao technology products are widely used in the fields of building doors and windows curtain walls, energy conservation and environmental protection, electronic power, automobile manufacturing, highway bridges and airport runways, subway engineering, solar energy, etc.
As an enterprise established for more than 20 years, Tuoli technology has rich accumulation in technology and market customers. The acquisition of Tuoli technology will help the development of Sibao technology in the R & D, production, sales and technical services of functional polymer materials such as silicone, epoxy and UV curing. This transaction also includes the content of gambling agreement, that is, in the next three years after completion, Sibao technology and Sibao new materials will conduct business assessment on the operating performance of Tuoli technology, the main assessment contents include: in the next three years, Tuoli technology plans to achieve the goal of deducting non net profit of 15 million yuan, 20 million yuan and 25 million yuan (that is, the cumulative assessment net profit of three years will reach 600 million yuan Million yuan). In addition, Sibao technology also requires that the cumulative operating net cash flow of Tuoli technology from 2020 to 2022 shall not be less than 80% of the cumulative assessment profit of three years. After the main business team has reached the agreed business performance assessment, Sibao technology and Sibao new materials agree to give 40% performance award to the part of the main business team that exceeds the assessment performance.
Data shows that in 2018 and January October 2019, Tuoli technology achieved operating revenue of 138 million yuan and 106 million yuan respectively, net profit of 9.2637 million yuan and 6.8332 million yuan. If the target of non net profit deduction in the next year is to reach 15 million yuan, Tuoli technology will realize the task of doubling the net profit in 2020.
Wang Youzhi, chairman of Sibao technology, said that an important factor for the company and Tuoli technology to finally reach a merger and acquisition is the strong complementarity of their businesses. Both sides have a similar starting time in the industry. Sibao technology mainly focuses on construction glue. Tuoli technology has obvious advantages in the fields of electronic appliances, UHV, 5g communication and so on, which are exactly the direction that Sibao technology wants to vigorously expand in the future.
The acquisition is conducive to broadening the company's industrial layout, enriching the company's product line, quickly cutting into emerging areas and entering the supply chain of leading enterprises. In the future, Sibao technology will be empowered by brand, management, capital and other resources to vigorously support Tuoli technology to obtain greater market share.