According to the Zhitong Finance App, Guangtai International Holdings (00844) announced that on May 8, 2023, Hainan Guangxun, a wholly-owned subsidiary of the company, entered into an investment agreement with the target company Youying Intelligent Technology (Shenzhen) Co., Ltd. and these existing shareholders. The investors intend to acquire about 23.4% of the target company's shares from these existing shareholders (accounting for about 18.4% of the target company's expanded shares after the investment transaction is completed) at a cost of RMB 34 million; and investors agreed to subscribe for the expanded shares of the target company for about 21.6% of the target company's expanded shares (at a cost of 21.6% after the investment is completed) RMB 40 million. After the investment agreement is completed, investors will hold approximately 40.0% of the target company's shares.
According to reports, the target company is a limited liability company established in China, which is mainly engaged in providing high-precision spatial measurement and modeling services, geospatial data measurement services, internal and external industry software development, urban information model (CIM) underlying platform and system construction, and R&D, production, sales and technical assistance for 3D high-precision measurement robots for industrial drones and lidar.
Bihu Digital is a wholly-owned subsidiary of the target company. It is a limited liability company established in China. It is mainly engaged in spatial measurements using self-developed industrial drones and lidar 3D high-precision measurement robots. It aims to establish a 3D model database of Chinese cities and provide related information technology services.
The Group believes that the investment will enable it to: seize development opportunities in the Chinese smart city market in line with the country's development direction. The reason is that the target company is one of the few companies in China that has self-developed and advanced software and hardware (including but not limited to high-precision space measurement drones and lidar 3D high-precision measurement robots and systems), can provide data collection services and sales data, and is committed to becoming a “digital space service provider and practitioner of digital China”; and to diversify the Group's revenue sources.
Furthermore, since the target company's products and technology have not yet been commercialized, the current valuation of the target company is relatively low. As a result, investment matters will enable the Group to enter industries with high growth potential at a relatively low cost.