Santai holding plans to acquire longmangdi

On March 3, Santai holdings announced that the company plans to purchase 100% equity of longmang Dadi agricultural Co., Ltd. (referred to as longmang Dadi) jointly held by Li Jiaquan and longmang group. This transaction constitutes a major asset restructuring. According to the operation and performance commitment of longmangdi in the next three years, it is estimated that the valuation range of 100% equity of longmangdi is 3.5-4 billion yuan. In the year of signing the equity transfer agreement and the next two years, the commitment performance is RMB 350 million, RMB 400 million and RMB 450 million respectively (the average commitment performance in three years is RMB 400 million). According to the announcement, longmangdi mainly deals in grain, fertilizer, feed and related agricultural services. Li Jiaquan and Sichuan longmang Group Co., Ltd. respectively hold 64% and 36% of its shares. In 2018, the company's operating revenue was 3.32 billion yuan, and its net profit was 299 million yuan. This acquisition is expected to solve the loss situation of Santai holdings. According to the performance express of Santai holding, in 2018, the total operating revenue was 716 million yuan, down 11.07% year on year; the net profit was loss 214 million yuan, and the net profit of the same period of last year was 302 million yuan. In addition, the company carried out impairment test on relevant assets as of December 31, 2018. According to the test, the company plans to make provision for impairment of available for sale financial assets and goodwill that may cause asset impairment loss in the consolidated statements, totaling 47 million yuan, and for long-term equity investment of the parent company, totaling 81 million yuan.