For The First Time In Two Years, The Major Mergers And Acquisitions Were Terminated.

Less than two years ago. Zhejiang start Limited by Share Ltd (hereinafter referred to as the "starting share") has attracted the attention of many people in the industry again. The topic begins with a merger plan planned last year. In May 9th this year, the restructuring plan for starting share planning was officially released. The initial shares are to be purchased by Liu Zhiheng, Ma Xiuping, Shenzhen Changyu, Longyan Hao Jia and Shenzhen Zhui Technology Co., Ltd. in the way of issuing shares, convertible bonds and paying cash. (hereinafter referred to as "Ze Hui technology") 88.5714% stake, cut into the rapidly developing cross-border export electricity supplier industry 。

Reporters noted that since the launch of the initial shares in August 2017, there has not been a larger M & a transaction. Initial shares, After the completion of the acquisition, the company will open the development mode of children's wear, children's shoes business and cross-border export business. On the basis of the existing main business, we will add new cross-border e-commerce business in the period of rapid development. The company will gradually launch business cooperation with zexhui technology, and start its shares to sell overseas products through Zexi technology sales channels, and expand overseas markets; ABC KIDS "Brand children's clothing and children's shoes create high-end brand boutique routes, forming differentiated competitive advantages.

Why will the initial shares be locked in the cross-border electricity supplier sector after the first major merger? Reporters noted that in recent years, cross-border electric business has become a hot spot for capital investment, and the early development of cross-border e-commerce enterprises to a certain scale has become a trend of capitalization.

Acquisition of "Ze Hui technology" equity

In recent years, cross-border electric business has become more and more popular. In the field of children's wear, there has also been a wave of investment in cross-border e-commerce. According to the plan, The initial shares are to be purchased by Liu Zhiheng, Ma Xiuping, Shenzhen Changyu and Longyan Hao Jia in the form of issuing shares, convertible bonds and cash payment. The 88.5714% stake is Zhui technology. 。 In March 31, 2019, the estimated value of the 100% equity interest of Zhui technology was 1 billion 800 million yuan, and its 88.5714% equity trading consideration was initially determined to be 1 billion 594 million yuan.

Initial shares were listed in August 2017. It is known as the famous children's clothing and children's shoes brand operator in China's children's products industry. Children's clothing brand "ABC KIDS" " It's from initial shares.

This time, Zexi technology, which started in the stock market, is a cross-border electricity export enterprise. Data show that Ze Hui technology was established in 2011. Mainly through cross-border B2C network retail business mode, and EBay, Amazon, aliexpress, WISH, Shopee, Walmart, Shopee The three party's international e-commerce platform sells 100 thousand kinds of goods, including clothing, shoes and hats, beauty and makeup, 3C electronics, mobile phone peripheral products, mother and baby toys, pet products, outdoor sports, home department stores, etc., to overseas terminal consumers. The export covers more than 180 countries and regions: Britain, France, Germany, Japan, Italy, Spain and Portugal. 。

Judging from the past two years' performance, Zhui technology achieved 1 billion 760 million yuan in 2017 and net profit of 82 million 260 thousand yuan. 2018 1~9 months, operating income of 1 billion 280 million yuan, net profit of 78 million 680 thousand yuan. 。

According to relevant data, In 2018, the scale of cross-border e-commerce transactions in China has reached 9 trillion yuan, an increase of 11.6% over the same period, of which the export cross-border e-commerce scale was 7 trillion and 100 billion yuan, an increase of 12.7% over the same period last year. 。

Based on the good prospects for cross-border electricity business, starting shares said that Zhui technology has strong profitability and better prospects for development. After the completion of this transaction, the synergy effect of Zhui technology and the company will generate new profit growth points.

The desire to transform into the sea has failed.

According to the 2018 stock market results, it has benefited from brand influence and product innovation. In 2018, the main revenue of the initial shares was 1 billion 399 million yuan, an increase of 4.43% over the same period, and the net profit of the shareholders belonging to the listed company was 181 million yuan, down 7.05% compared with the same period last year. 。 In the first quarter of 2019, the main share income was 316 million yuan, an increase of 19.11% over the same period, and the net profit attributable to shareholders of listed companies was 46 million 608 thousand and 400 yuan, an increase of 47.63% over the same period last year. 。 In the eyes of the industry, Cross border e-commerce exports will become an important engine of China's foreign trade and exports. 。 The source of the performance of the initial shares depends mainly on the domestic market. The decline in profits in 2018 also showed a weak growth in the domestic market, which is one of the reasons why the initial shares are aiming at cross-border retail business. 。

Since its inception, it has been focusing on children's shoes, children's wear and children's clothing accessories. T-shirts, trousers, sweaters, skirts, jackets, down garments And so on. Data show that In 2018, the income of cloth shoes in children's shoes increased by 83.22% over the previous year, and the income of children's clothing accessories increased by 60.82% over the previous year. 。 According to relevant statistics, In 2018, the market share of the top 10 brands in China's children's shoes market was 15.20%, and the market share of "ABC KIDS" reached 3.6%, ranking first in the children's shoes market. 。

Prior to this, the initial shares also said that the acquisition of shares will help the company to turn the vision of "serving the global children" into reality, further expand overseas markets, build overseas sales channels, enhance the company's multi-channel and multi-level sales network advantages, and provide products with a wide variety of styles and styles for children aged 3~13 years old, so as to provide children with healthy products and services at ease.

However, the restructuring plan for the initial shares failed. In June 15th, the announcement of the restructuring and termination of the shares was announced. The company decided to terminate the acquisition of Zexi technology 88.5714% stake due to the failure to reach an agreement on important terms. This also meant that the initial intention of the initial shares to enter the cross-border electricity export business through acquisitions and integration was frustrated. 。 In fact, shortly after the announcement of the restructuring and reorganization of the shares, the Shanghai Stock Exchange issued a letter of inquiry about the restructuring. After the completion of the transaction, the stability and related measures of the listed companies' future control rights, and whether there is any evasion in the transaction constitutes a situation of restructuring and listing. In addition, about the financial, valuation and performance commitment information of Zhui science and technology assets, a key inquiry was also made in the enquiry letter of the Shanghai Stock Exchange.

Insiders believe that Although many marketing channels are necessary for products to go to the market, there is still a big gap between overseas market and domestic market. 。 In particular, if we fail to lay a solid foundation in the domestic market, we will blindly seek overseas markets. Ultimately, we can not only seek new growth points, but will drag down performance. In addition, the merger and acquisition of cross-border enterprises by traditional enterprises is also difficult to integrate.