Events:
The company announced on the evening of July 1st that it would acquire 60 per cent of Guangxi Pingxiang New Henderson Investment Co., Ltd. for 36.7397 million yuan. After the completion of this acquisition, New Henderson will become the holding subsidiary of Wuzhou Transportation.
Main points of investment:
New Henderson provides logistics services for border trade between China and Vietnam. Guangxi Pingxiang New Hengji Investment Co., Ltd. was established on December 15, 2009 and holds 150 mu of land in the comprehensive commodity market of Hairun Intermarket. the future investment direction is mainly to invest in the construction of Pingxiang Hairun Intermarket Commodity Comprehensive Market project. and for the border people to cross the border market point to provide barging, warehousing, trading, settlement and other services. The income of Hairun project mainly comes from the vehicle admission fee, weighing fee and rent generated by goods barging, distribution, warehousing and so on. The profit model relies on the rapid growth of the trading volume of goods at the border people's mutual market, and makes use of the unique geographical location and additional services of the Hairun project to provide the lowest cost and most convenient transfer service to achieve profit. The company does not have the situation of entrusting financial management, but the new Henderson company has mortgaged the land use right of 150mu under the company's name, with a total loan of 29.1 million yuan.
The acquisition supports the company to develop the logistics sector. This equity acquisition will help the company to grasp the good situation of the national "Belt and Road Initiative" and the border trade economic development of the autonomous region, invigorate and link the company's existing logistics plate business resources (Pingxiang International Logistics Park) and cross-border e-commerce platform. In line with the company's established development strategy of strengthening and expanding the company's logistics business.
The new Henderson Border Trade Exchange project is supported by the government and develops rapidly. In 2015, the total volume of foreign trade imports and exports in Pingxiang City broke through the US $10 billion mark, reaching US $10.47 billion, an increase of 19.7% over the same period last year. In particular, the fruit trade volume of characteristic products has exceeded 1.41 million tons, making it the largest fruit port in the country. With the establishment of Pingxiang Border Trade goods Supervision Center in mid-February this year, the obvious strengthening of customs supervision and service quality, and the effective improvement of the efficiency of goods clearance, the foreign trade import and export industry of Pingxiang City will stand on a new level. In the future, Pingxiang will continue to devote itself to building international channels, strategic fulcrums and important portals, taking cross-border cooperation between China and Vietnam as an opportunity to raise the level of development and opening up along the border, and actively promote the key work along the level of opening up along the border. this includes bringing the Nonghuai area where the New Henderson Company is located into the scope of the opening of the Friendship Port, from which the future business of New Henderson will benefit.
Risk Tips:
Changes in the policies related to the diplomatic relations and border trade exchanges between China and Vietnam.