Sinotech Holdings terminates its acquisition of Ruyi Xinxin Pictures and moves into the military industry

Sinotech Holdings announced on September 23 that the company's acquisition of Ruyi Xinxin Pictures was terminated and decided to enter the military industry instead. It has acquired part (no less than 51%) or all of the equity of Wuhan Xiaolong with Wuhan Xuancheng. Preliminary cooperation intention. The company will announce this major asset reorganization plan on October 8, 2015.

Sinotech Holdings announced on September 23 that the company's acquisition of Ruyi Xinxin Pictures was terminated and decided to enter the military industry instead. It has acquired part (no less than 51%) or all of the equity of Wuhan Xiaolong with Wuhan Xuancheng. Preliminary cooperation intention. The company will announce this major asset reorganization plan on October 8, 2015.

Due to the planning of major events, the shares of Sinotech Holdings have been suspended since June 15, 2015, and entered the material asset reorganization process since June 23, 2015. Previously, Sinotech Holdings announced high-profile entry into the cultural film and television industry, and made substantial progress in the acquisition of Diandian Interactive and Ruyi Xinxin Pictures. However, these two film and television companies have been "robbed" by other companies. However, Sinotech Holdings quickly found an ideal M & A target in the military sector.

The announcement stated that Wuhan Xiaolong's intended total valuation is expected to be RMB 5 billion, but other information about the company was not disclosed. According to public information, Wuhan Xiaolong is a joint-stock private enterprise established in 2006. It mainly produces independently developed "Xiaolong Series" police and military off-road vehicles with completely independent intellectual property rights and its own brand. It currently has the annual production and sales of 1000 to 3000 off-road vehicles. Production capacity of complete vehicles, chassis and major parts or component assemblies. After the company's fixed asset investment in the second phase of the project is completed, it will have the ability to produce and sell 10,000 to 30,000 multi-variety light off-road vehicles annually. Wuhan Xiaolong said that Xiaolong Automobile is a domestically produced high-mobility off-road vehicle with off-road performance comparable to that of the American Hummer. It has broad space in the military and civilian special vehicle industries and various military vehicle-mounted weapons markets.

First, he was keen on film and television investment, and now he has moved to the military industry. The transformation needs of Sinotech Holdings are urgent. In this regard, Sinotech Holdings explained that the company's transformation is to strive for diversification.

Sinotech Holdings is currently mainly engaged in the research and development, production and sales of prefabricated concrete piles. With a certain scale and market share, it is difficult to achieve rapid growth in operating performance. In the first half of this year, Sinotech Holdings achieved a net profit of 41.66 million yuan, a year-on-year decrease of 12.44%; while last year, the company achieved a net profit of 145 million yuan, a year-on-year increase of 15.33%.

[Original Announcement]

Announcement on the Progress of the Material Asset Reorganization of Sinotech Holdings and the Signing of the "List of Core Intention Terms to Purchase Part or All of the Equity Equity of Wuhan Xiaolong Automotive Technology Co., Ltd." and Affiliated Contracts

"by the Independent Directors of Sinotech Holdings on the Progress of the Material Asset Reorganization and the Signing of" Proposed Acquisition of Part or All of the Equity of Wuhan Xiaolong Automotive Technology Co., Ltd."Independent Opinions

on the Announcement of Holding an Investor Briefing Meeting on Material Asset Reorganization

Editor: vian