The common people introduced Linzhi and Tencent as a strategic investment, planning to raise 600 million yuan to repay bank loans


2020-06-23 14:24:40Beijing News reporter: Yan Xia Editor: Zhao Ze
Original copyright prohibits commercial reprintingAuthorization

The common people introduced Linzhi and Tencent as a strategic investment, planning to raise 600 million yuan to repay bank loans

2020-06-23 14:24:40Beijing News reporter: Yan Xia

The plan shows that the total amount of funds raised by the people in this non-public issuance will not exceed 600 million yuan, which will be used to repay bank loans after deduction of issuance costs.

Beijing News Shell Finance and Economics (Reporter Yan Xia) On June 23, Laobaixing Pharmacy Chain Co., Ltd. (hereinafter referred to as “Laobaixing) disclosed a plan for non-public issuance of A shares and will introduce Linzhi Tencent as a strategic investor.

Prior to this, Linzhi Tencent did not hold shares of ordinary people, and will now subscribe for the shares of ordinary people in this non-public offering in cash.

Why introduce Linzhi Tencent combat investment?

The full name of Linzhi Tencent is Linzhi Tencent Technology Co., Ltd., and the legal representative is Li Zhaohui. Its main business is computer software and hardware technology development and sales, economic information consulting, business management consulting, domestic trade, investment and establishment of industries.

Shenzhen Tencent Industrial Investment Fund Co., Ltd. holds 100% equity of Linzhi Tencent.

The common people said that the introduction of Linzhi Tencent is of strategic significance. “After this non-public offering, Linzhi Tencent will become a strategic investor in a listed company and establish a comprehensive and in-depth strategic partnership with the company in the areas of smart retail, cloud computing, and cloud services.”

It is reported that the period of strategic cooperation between Linzhi Tencent and ordinary people is 5 years. After the completion of this offering, Linzhi Tencent intends to nominate a director candidate to the listed company. The director candidate nominated by the strategic investor is elected as a director of the listed company after the listed company has performed the necessary review procedures. The director will participate in the decision-making of the listed company’s board of directors and play a role in corporate governance.

“Linzhi Tencent is a subsidiary of Shenzhen Tencent Industrial Investment Fund Co., Ltd. It has leading technology and platform advantages in the Internet field. It can rely on its rich industrial resources and operational management advantages to carry out multi-faceted cooperation with listed companies and carry out comprehensive grants. Yes, it will help listed companies to improve their core competitiveness.” The common people said.

On June 23, after the news of the fixed increase and the introduction of strategic investment was disclosed, the common people’s stock price fell. As of the noon close, the decline was 3.92%, but its price of 95.08 yuan per share was still higher than the non-public offering of shares. Issue price.

It is reported that the issue price of this non-public offering of shares is 70.34 yuan per share.

What is the intention of raising 600 million yuan?

The plan shows that the total amount of funds raised by the people in this non-public issuance will not exceed 600 million yuan, which will be used to repay bank loans after deduction of issuance costs.

The ordinary people explained that with the development of the national economy and the changes in the pharmaceutical distribution system, the competition among pharmaceutical retail chain companies has become increasingly fierce. The company needs to consolidate and further enhance its competitive position in the industry by accelerating store expansion and external mergers and acquisitions. . To this end, the company flexibly raises funds through bank borrowings and issuance of bonds to cope with fierce industry competition, but at the same time it has also led to the problem of high asset-liability ratios.

It is reported that at the end of 2017, 2018, 2019 and March 2020, the asset-liability ratios of ordinary people were 53.71%, 60.29%, 60.96% and 61.65%, respectively, and the financial expenses during the period were 58.414 million yuan, 42.537 million yuan, and 66606.69. Ten thousand yuan and 16.2283 million yuan are both at a relatively high level in the same industry, which restricts the company’s capital flexibility to a certain extent and reduces the company’s profitability.

“The funds raised from this issuance will be used to repay bank loans, the company’s capital structure will be optimized, and the scale of financial expenses will be reduced, which will help improve the company’s profitability. In general, the funds raised from this issuance will enable the company to obtain more sufficient funds. It is used for the main business operation, strengthens its core competitiveness, enhances its anti-risk ability, and further expands the development space of the main business.” The common people said.

Beijing News Shell Finance reporter Yan Xia editor Zhao Ze proofreading Wang Xin

Click to load more

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *