Starting From May, The Shares Are Fully Controlled.

As a well-known brand operator in the domestic children's products industry, the initial shares (603557) have sprouted the idea of cross border export electricity business after more than one year of listing. In December 2018, we bought 11.4286% equity interest of Shenzhen Ze Hui Technology Co., Ltd. (hereinafter referred to as "Ze Hui technology"), with a view to expanding the sales channels and cultivating new profit growth points at home and abroad.

Today, less than 5 months from the previous acquisition, the starting shares announced on May 8th evening that the company intends to make a 1 billion 594 million yuan purchase of the remaining 88.57% of Zhui technology.

According to the restructuring plan disclosed in the initial shares, the company intends to issue shares, convertible bonds and cash in order to buy Liu Zhiheng's, Ma Xiuping, Shenzhen Changyu and Longyan Hao Jia's total holdings of Zhui technology 88.5714% stake.

The 100% equity interest of Zhui technology is estimated at 1 billion 800 million yuan, and its 88.5714% equity trading consideration is initially determined to be 1 billion 594 million yuan.

Equity relations show that Liu Zhiheng and his spouse Ma Xiuping directly and indirectly hold 78.57% of Zhui technology, which is the common practical controller of Zhui technology.

It is understood that zexhui technology is mainly engaged in cross-border e-commerce export business, relying on China's high-quality supply chain resources, the use of Internet information technology, through fast selling, Wish, Shopee, Amazon, eBay and other three cross-border e-commerce platform, will directly sell goods to overseas terminal consumers, specifically covering clothing accessories, baby products, household products, outdoor products, beauty and health products, 3C digital products, automotive products, pet products and other categories.

Financial data show that in the first quarter of 2017, 2018 and the first quarter of 2019, Zhui technology achieved operating income of about 1 billion 756 million yuan, 1 billion 755 million yuan and 530 million yuan respectively. The corresponding net profit in the current period was about 76 million 153 thousand and 400 yuan, 74 million 390 thousand and 700 yuan and 17 million 553 thousand and 100 yuan respectively.

For the performance commitment of the underlying company, the preliminary plan shows that after the initial consultation of the parties is completed, the parties to the paction will further negotiate the performance commitments of the paction subject to the completion of the audit and evaluation of the underlying assets.

At that time, the parties concerned will sign another "profit forecast compensation agreement" to make a clear agreement on the amount of performance commitment and the way of compensation.

The main business of the initial shares is the design, research, development, production and sale of children's shoes, children's clothing and children's clothing accessories. It is a well-known brand operator in the domestic children's products industry. It is committed to providing 3-13 year olds with all kinds of clothing products, including sports shoes, leather shoes, cloth shoes, children's wear and accessories.

For the purpose of the above pactions, starting shares said that through the integration of acquisitions and integration, it will quickly enter the cross-border export electricity supplier industry, achieve the strategic goal of leapfrog development, expand the sales channels at home and abroad, accelerate the company's main brand "ABC KIDS" and its children's clothing and children's shoes products to go abroad, improve the visibility and share of overseas markets, and achieve new profit growth points.

Statistics show that the initial shares landed on A shares in August 18, 2017. The net profit of the company in the first year of the listing was about 194 million yuan in 2017, up 10.68% compared to the same period last year. Net profit in 2018 was about 181 million yuan, down 7.05% from the same period last year.

According to the latest quarterly report released in 2019, the net profit of the company during the reporting period was about 46 million 610 thousand yuan, up 47.63% over the same period last year.

As a matter of fact, in December 2018, the stock started to acquire 11.4286% stake in Zhui technology and the paction price was 200 million yuan.

In response to related issues, the Beijing Commercial Daily reporter called the beginning of the stock Office of the secretaries to interview, but no one answered.