Event: the company intends to jointly acquire 40.74% equity of Shanghai Tabos Exhibition Co., Ltd through agreement transfer and directional capital increase, of which the company holds 34.81% equity and Huizhan Fund holds 5.93% equity. The company plans to contribute a total of 42.3 million yuan, and the Huizhan fund plans to contribute a total of 7.2 million yuan.
Comments:
An influential new pet show. It Booth hosts pet industry exhibitions, including "TOPS Expo", "TOPS Pet Industry Annual Conference", and co-sponsor "Pet New domestic products Conference" and "China Pet Industry Retail Conference". Among them, the third "TOPS it Expo" was held at the Shanghai World Expo Pavilion (operated by Lansheng), with an area of 70,000 square meters, 792 exhibitors, a booth renewal rate of more than 92%, a professional audience of 48000, an increase of 38.8%, and consumers of more than 130000, an increase of 60.5%. In addition, it also attracts traffic both online and offline. The number of people who participated in the live broadcast of the three-day exhibition reached 3,600 GMV, and the hot list of Douyin was viewed 250 million times. The fourth Expo will continue to be held at the Shanghai World Expo Pavilion. Booth estimates that the number of exhibitors will reach 800 + and the number of professional visitors will reach 60,000 +.
The founding team is experienced. It Booth is formed by the pet media matrix and the exhibition organizer team. Among them, pet home is the largest pet industry media matrix in China, with 200000 + professional subscribers and the largest number of users in China; the exhibition organizer team of its Expo has 10 years of successful experience in public relations events, exhibitions, conference organizations and hundreds of project cases.
The first exhibition will make a profit. When the first TOPS Expo was held in 21 years, it achieved an income of 20.29 million yuan and a net profit of 1.77 million yuan. The 22-year epidemic interfered with the exhibition, with revenue down 19.4% from the same period last year, but net profit increased by 30%. In 23-26, the revenue targets of its Booth are 3200, 500, 490, 500, 000. if any of the actual performance indicators for any year does not reach 70% of the promised performance, the company has the right to ask it to buy back shares.
Expanding the layout of consumer exhibitions is expected to bring new momentum. This acquisition expands the layout of consumer exhibitions and is expected to give full play to its synergy. The company has established the two-wheel drive strategy of endogenous development and extension mergers and acquisitions, and this acquisition also fully reflects the landing of the extension strategy.
Investment advice: the acquisition of high-quality exhibition target Tabus, is expected to bring synergy, for the company to add consumer exhibitions, and the pet industry itself has a high bearing, the exhibition is in a period of rapid development. At the same time, this acquisition also implements the company's extension strategy, we expect that the acquisition is not only expected to thicken the company's performance, but also is expected to bring new momentum to the company.
Risk hint: the impact of macro-economy on the convention and exhibition industry, booth sales are less than expected.