The risk of a single main business operating, Wolong Real Estate may be cross -border mining 丨 Company

Gao Zhengkun/From Beijing

Wolong Real Estate's reorganization is constantly advancing.

On June 17, Wolong Real Estate (600173.SH) issued an announcement that the company intends to purchase 98%of Wolong Mining held by Wolong Holdings by paying cash by Shanghai Wolong and 2%equity held by Wolong Mining held by Ma Zhe. Essence After the transaction is completed, Wolong Mining will become a wholly -owned subsidiary of a listed company.

Based on preliminary estimates, with the evaluation benchmark date on December 31, 2021, the estimated value of the underlying asset is 423 million yuan. After negotiation between the two parties, the transaction price of the underlying assets was initially determined to be RMB 406 million.

Data show that Wolong Mining is a company that mainly focuses on mixed processing and sales of raw ore and other raw ore ore. In 2020 and 2021, sales revenue was 1.43 billion yuan, 3.766 billion yuan, and net profit of 23 million yuan and 58 million yuan. As of the end of 2021, the company's total assets reached 692 million yuan and net assets were 168 million yuan.

Wolong Real Estate said that after the transaction is completed, Wolong Real Estate will introduce the processing business mainly based on copper concentrate -based mineral metal products to effectively disperse the operating risks brought about by the current single main business operation of Wolong Real Estate, and enhance the anti -risk capabilities of listed companies Essence

It should be noted that Wolong Real Estate did not disclose the transaction price in this announcement.

Affected by the above news, Wolong Real Estate rose the daily limit on June 16 to 6.4 yuan/share, up 9.97%. On a previous trading day, Wolong Real Estate also harvested the daily limit.

In fact, this is not the first time Wolong Real Estate has acquired mining companies.

On January 11 this year, Wolong Real Estate purchased 100%equity of Shanghai Wolong Mining Co., Ltd. for 68 million yuan in cash. Subsequently, the transaction attracted the attention of the regulatory authorities. The Shanghai Stock Exchange sent an inquiry letter to Wolong Real Estate to question issues such as Shanghai Wolong's core competitiveness, the necessity of acquisitions, and the rationality of the acquisition price.

Within half a year, why did they enter the mining field twice? What are the considerations of the company's management? In response to these issues, a reporter from China Real Estate News called Wolong Real Estate to understand the situation, but as of press time, no reply was received.

"The major asset reorganization is the strategic measures of Wolong Real Estate in the case of a large pressure on the mainstay of real estate industry, which is conducive to finding the second main business and the second growth curve for the company." Wen Xi said.

According to the annual report, the main income of Wolong Real Estate comes from real estate. Its real estate revenue from 2019 to 2021 is 99.45%, 99.56%, and 99.53%, respectively. In the first quarter of this year, Wolong Real Estate's operating income was about 442 million yuan, a year -on -year decrease of 17.11%; net profit was about 53.73 million yuan, a year -on -year decrease of 56.24%; the net profit after deducting non -recurring profit and loss was 57.09 million yuan, a year -on -year decrease of about 54%. According to the official website, the company currently has only 3 projects.

If the timeline is stretched, Wolong Real Estate has been seeking a new growth point a few years ago, and there is no illness.

On June 3, 2014, Wolong Real Estate suspended trading due to major reorganizations, but after a week, the reorganization was terminated because the two parties failed to reach an agreement on major issues as required in the prescribed time, and then Wolong Real Estate disappeared for 2 years.

In September 2016, Wolong Real Estate announced its entry into the gaming industry and released a transaction plan (revised draft) based on the game company Mo Lin's shares; in November 2016, the transaction was terminated due to a certain difference in the "subsequent strategic development plan".

On May 20, 2017, the reorganization of Wolong Real Estate failed again. It issued an announcement saying that "given the domestic securities market environment and regulatory policies, the parties to this transaction believe "Not mature enough" decided to terminate the major reorganization of Tianjin Kale. The latter as a mobile game company, with a number of old classic game IPs such as the King of Fighters and the Alloy Subject.

Although the gaming business has contributed to the company's performance in previous years, as of now, Wolong Real Estate has gradually withdrawn, and it has stopped entering the game industry.

How to avoid repeating the same mistakes in the mining field with several reorganization failure experience?

Bo Wenxi believes that Wolong Mining and Wolong Real Estate belong to the same actual controller. This transaction is strong or controllable in terms of transaction targets or trading conditions. The company's market value and other aspects can better realize the established intentions. This may also be the main reason why Wolong Real Estate chooses mining as a new business and the choice of Wolong Mining.

An Guangyong, an expert of the Credit Management Committee of Quanlian M & A Association, believes that there are still some mobile funds (or when they are capable of financing), investing in the air outlet industry or stable industry. Essence

For Wolong Real Estate, this new business attempt takes time to test, and the main real estate business is still the foundation of its survival. On June 7 before this announcement, Wolong Real Estate won the land use right of a land in Yuecheng District, Shaoxing City for 768 million yuan.

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Editor in charge: Ma Lin Liuya

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