Sumec Buys Lanke Shares; Emerging Industrie Strengthen.
On the evening of September 9th, Sumec (600710) and Lanke High-tech (601798) jointly issued announcements. Sumec intends to acquire 17 million shares of Lanke High-tech, accounting for 4.8% of the total share capital, from Shanghai Pudong Machinery Industry Co., Ltd. (hereinafter referred to as "Shanghai Pudong") through a non-public agreement transfer.
According to the agreement, the aforementioned share transfer price is 5.09 yuan per share, which is a premium of approximately 4.5% over the latest share price of Lanke High-tech, with a total transaction amount of 86.53 million yuan.
As of now, Shanghai Pudong directly holds 4.8% of the shares of Lanke High-tech, and after adding the shares controlled through voting rights trust, it collectively controls 33.15% of the company's shares. After the transaction is completed, Shanghai Pudong will no longer hold shares in Lanke High-tech directly but will still control 28.35% of the shares through voting rights trust, remaining the controlling shareholder of the company.
Public information shows that both Sumec and Shanghai Pudong are subsidiaries under China National Machinery Industry Corporation. This share transfer is an agreement transfer under the same control.
Advertisement
It is worth mentioning that the shares Shanghai Pudong intends to transfer this time have been judicially frozen due to a financial loan dispute since October 31, 2023, and the applicant for the freeze is Shanghai Electric Group Co., Ltd. Shanghai Pudong promises to lift the share freeze before the transaction.
Why is Lanke High-tech targeted? Sumec stated that it is mainly to accelerate the layout of strategic emerging industries and to deepen industrial collaboration through equity cooperation.
Lanke High-tech is mainly engaged in the research and development, design, manufacturing, and testing of special equipment for the petroleum and petrochemical industry, and is a first-tier supplier to enterprises such as PetroChina, Sinopec, and CNOOC. At present, the company has two industrial bases in Shanghai and Lanzhou, with the capability to produce single-piece products weighing 500t, and an annual processing capacity of up to 50,000 tons of metal, which can be used for the manufacturing of equipment with various special materials such as zirconium, nickel-based, titanium, and aluminum. The Shanghai base has a 500t transportation dock, which can connect to both river and sea, meeting customers' transportation needs. In terms of the market, Lanke High-tech's products and business have spread across 31 provinces (autonomous regions, municipalities directly under the Central Government) in China, as well as more than 10 countries and regions in Asia, Europe, Africa, and America, and have maintained good technical exchanges and cooperative relations with more than 20 well-known international enterprises.
In terms of performance, Lanke High-tech has been under pressure in recent years, with losses for three consecutive years. In the first half of this year, the company achieved a revenue of 341 million yuan, a decrease of 25.39% year-on-year; the net profit was -9.6881 million yuan, a reduction in losses of 43.5615 million yuan year-on-year. Benefiting from product structure optimization, the semi-annual product gross margin was 20.84%, an increase of 7.23 percentage points year-on-year.
Sumec pointed out that after taking a stake in Lanke High-tech, the two parties will gradually establish long-term cooperation in fields such as molten salt energy storage projects, overseas petrochemicals, new energy businesses, and processing businesses for LNG tanks and desulfurization and decarbonization systems in shipbuilding, supporting the company in achieving strong chain and supply chain enhancement in related engineering, trade, new energy, and green shipbuilding fields.
In recent years, Sumec has continued to delve into the supply chain and industry chain, while using new technologies to transform and upgrade traditional industries to promote high-quality development. Over the past three years, the compound annual growth rate of the company's main business income in the industry chain segment has been 7.26%, and the compound annual growth rate of the total profit has been 28.37%.In the first half of this year, Sumec achieved profit growth on the basis of declining revenue. The revenue was 55.928 billion yuan, a year-on-year decrease of 13.3%; the net profit was 570 million yuan, a year-on-year increase of 12.12%; the total import and export volume reached 6.417 billion US dollars, a year-on-year increase of 8%, of which imports were 3.874 billion US dollars, a year-on-year increase of 3%; exports were 2.543 billion US dollars, a year-on-year increase of 16%.
According to Sumec's plan, the company's business is divided into key business and incubation business, with the key business further divided into core business, advantageous business, and strategic business. Currently, the company's core business is the import and export of mechanical and electrical equipment and the operation of bulk commodities, the advantageous business is advanced manufacturing and mass consumption, and the strategic business is clean energy and ecological and environmental protection; the incubation business mainly focuses on the medical and health industry and the digital industry.
Leave a Comment