Nantong forging the evening of October 26 announcement, the company intends to issue shares and pay cash to buy 100 million crystal as 70% stake in the total transaction price of 924 million yuan.
Since its establishment in 2012, the company has focused on the domestic commercial buildings video advertising field, has now covered China's most valuable and development potential of 31 cities in the high-end commercial buildings, is forming a cover advertising screen, mobile phone mobile terminal, large data , The cloud spread the office of the exclusive ecological communication system, the company's financial data show that in 2015, 2016 the company's net profit of 43.78 million yuan, respectively, 91.86 million yuan.
Market data show that Nantong forging the subject of the purchase of the mobile Internet industry is in the industry rising.With the popularity of smart phones, mobile Internet development speed continues to accelerate, mobile marketing as an important part of mobile Internet, also Ushered in the rapid development of its scale has been expanding.The data show that in 2016 the size of the mobile advertising market has reached 175 billion yuan, the market has great potential.
Nantong forging
In July this year, Nantong forging use of 250 million yuan of its own funds to acquire 100% stake in Shenzhen Olive Leaf Technology Co., Ltd. Nantong forging hope that through mergers and acquisitions cut into the fast-growing mobile advertising market, expand new profit growth point, and the original Traditional manufacturing industry to form a two-wheel drive situation, to promote business restructuring and upgrading.
At present, due to the overall sluggish impact of the metal processing industry, Nantong forging traditional forging business is facing greater pressure. At the same time, due to the overall downturn in the metal processing industry, Nantong forging traditional forging business is facing greater pressure. Mid-year report shows that the company's net profit has declined significantly; 2016 year, Nantong forging operating income increased by 1.81%, slowdown in the trend is obvious.
Investment management, the Nantong forging such as the success of mergers and acquisitions, will help the company to form the Internet and the real economy in-depth integration of the development model.Nutong forging the original metal forming machine tool industry is labor, capital-intensive industries, showing traditional manufacturing The typical production of heavy assets, capital occupation, long production cycle, low turnover rate; Corresponding to the olive leaf technology, 100 million crystal as the mobile advertising industry, showing the typical characteristics of the Internet industry, light assets, High profit margins, fast cash flow, with good cash flow, olive leaf technology, 100 million crystal as the two companies with the industry can also form complementary advantages, intensive management.
Another view is that Nantong forging is expected to use this acquisition to reduce the market risk of a single main business, will effectively enhance the company's profitability and competitiveness for the shareholders to create wealth effect. This is also in line with the regulatory reorganization of the ' The quality of listed companies to protect the positioning of small and medium investors.