*ST Jinyu Promotes The Holding Of The Ten Party Ring To Enter The Field Of Environmental Protection And Energy.

In May 15th, *ST Jinyu announcement company continued to promote the holding of the ten party ring energy, which is the first step for the North control department to enter the field of environmental protection after entering *ST Jinyu.

The announcement shows that Jinyu car city plans to issue shares and pay cash to buy ten party ring to 86.34% stake in the transaction side, and to raise funds to the North controlled PV and its related party Yu sing fund in a non-public offering way. This transaction is intended to raise matching funds in addition to paying for the acquisition of the ten party ring price, paying the debts of the listed companies and replenishing the liquidity of the listed companies, which is mainly used for the investment project of the Nanchong Austrian equipment manufacturing and digital R & D center invested by the listed companies in Nanchong. The total investment in the initial design of the project is 168 million.

Public information shows that the ten party ring has previously been listed as a new three board company, and is a senior enterprise in the field of environmental protection and energy. The bright spot is that the ten party ring has the complete system of technology and equipment related to the application of anaerobic microorganism including 6 invention patents. During the reporting period, the projects mainly used self-produced equipment, and the proportion of self-produced equipment accounted for about 37% of the total project investment.

The main business of the ten party ring includes the harmless disposal and resource utilization of kitchen waste, the comprehensive utilization of landfill gas (biogas), the utilization of biomass energy, and the sale of organic waste disposal equipment. The ten party ring kitchen waste disposal project has strong regionality and exclusiveness within the scope of authorization.

After the introduction of the North control system, the market anticipate that the North control system can bring new business to the listed companies and save the poor performance of the listed companies. For the acquisition of the ten party ring energy, *ST Jinyu said to the Beijing news that the ten party ring business can be carried out mainly through the franchise mode, with less operating risk and better cash flow. The average annual net cash flow in the reporting period is 6 More than 000 yuan, 2.33 times net profit. As of the date of this reply, the ten party ring has been able to establish stable cooperative relations with existing customers, and the possibility of large fluctuations or losses is low. With the rapid growth of the market of the domestic waste treatment and resource utilization, the ten party ring operation project will further expand, business performance is expected to maintain sustained growth, and the risk of future performance fluctuation is small. In addition, this transaction is estimated by asset based approach, which is lower than the asset based method and the income method valuation value. It is basically equivalent to book net assets plus deferred income, and the value of the ten party ring can be increased in the history. The listed company will not form the risk of goodwill impairment.

Analysts told the Beijing News reporter that the major shareholder of Jinyu car city, North control group, is mainly invested in construction and management of large-scale comprehensive environmental protection projects. Based on the strong brand advantage of the North control group in the investment and operation of urban infrastructure and the advantages of the financing platform of the listed companies, it can also realize the complementary advantages of the ten groups, namely, the North control group, the listed company and the three party. Coordinated development. This may be the core of the cost push transaction.