Wanhui chemical plans to acquire 30.89% equity of Lianyang Guorong

Recently, Wanhui chemical announced that it plans to acquire 30.89% equity of data service enterprise Lianyang Guorong and change its name to "Lianyang intelligent Holding Co., Ltd.". According to the announcement, the company will issue 17474700 new consideration shares to the seller at the issue price of HK $2.85 per share, which is equivalent to about 2.64% of the issued share capital of the company. The consideration share of HK $2.85 per share was 25.59% off the closing price of HK $3.83 on September 10. Lianyang Guorong Holdings Limited, the target company, will issue subscription shares to the company at a subscription price of RMB 69 million, which will be settled by the company in cash. Upon completion, the company will hold about 30.89% of the issued share capital of the target company, and the target company will be recorded as an associated company 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. The operating company is Lianyang Guorong (Beijing) Technology Co., Ltd. (hereinafter referred to as "Lianyang Guorong"), mainly engaged in the development of big data mining, modeling and overall analysis, as well as digital risk management services for retail financial services. Wanhui chemical said the acquisition is a valuable opportunity to participate in the risk management services based on big data in the retail financial services business. The board of Directors proposes to change the name of the company from "Wanhui chemical Holding Co., Ltd." to "Lianyang intelligent Holding Co., Ltd.". It is understood that Wanhui chemical is an industrial coating manufacturer, engaged in the manufacturing business of customized liquid and powder coatings, mainly providing customized coatings required by its products to customers in the toy industry and consumer electronics industry. According to the financial data, in the first half of the year, Wanhui chemical's profit changed from profit to loss, and its revenue also declined. As of the first half of 2019, Wanhui chemical industry gained 191 million Hong Kong dollars, a year-on-year decrease of 4.3%, a loss of 23.477 million Hong Kong dollars, and a profit of 7.426 million yuan in the same period of last year.