Wanhui Chemical intends to acquire 30.89% of Lianyourong and rename it

Recently, Wanhui Chemical announced that it intends to acquire 30.89% of Lianyangrong, a data service company, and change its name to Lianyang Intelligent Holding Co., Ltd.

The announcement said that the company would issue 17.477 million shares at the issuance price of HK$2.85 per share to the seller to settle the settlement, which is equivalent to about 2.64% of the company's issued capital by issuing cost shares. The share price of HK$2.85 per share was 25.59% lower than the closing price of HK$3.83 on September 10. The target company Lian Yang Guo Rong Holdings Limited will issue subscription shares to the company at a subscription price of RMB 69 million, which will be settled in cash. Upon completion, the company will hold about 30.89% of the issued equity of the target company, and the target company will be accounted for as a joint venture of the company. In addition, the announcement shows that the target company will have indirect control over the management and operation of the operating company. Operating company for Lianyourong (Beijing) Technology Co., Ltd. (hereinafter referred to as "Lianyourong"), mainly engaged in the development of big data mining, modeling and overall analysis, as well as providing digital risk management services for retail financial services.

Wanhui Chemical said that the acquisition was a valuable opportunity to participate in risk management services based on big data in retail financial services. The board of directors suggested that the name of the company be changed from Wanhui Chemical Holding Co., Ltd. to Lianyang Intelligent Holding Co., Ltd. It is known that Wanhui Chemical Company is a manufacturer of industrial coatings, engaged in the manufacture of liquid and powder coatings, mainly providing customized coatings for toys and consumer electronics customers.

According to the financial data, Wanhui Chemical Company's profits in the first half of the year changed from profit to loss, and its revenue also declined. As of the first half of 2019, Wanhui Chemicals earned HK$191 million, down 4.3% from the same period last year, with a loss of HK$23.477 million and a profit of HK$74.26 million in the same period last year.