Event: on March 3, the company's board of directors approved and disclosed the "pre-plan for the 2020 non-public offering of shares on the growth Enterprise Market of Lion Technology Co., Ltd.", announced the fixed increase plan of 700 million, and followed up to promote the approval of the shareholders' meeting and the China Securities Regulatory Commission. To a specific target: Lionlian issued 600 million yuan, with a lock-up period of 36 months, which is mainly held by senior executives such as Wang Gang, the company's actual controller and chairman, Jin Pu, the head of Hangzhou Wochi, and Qian Qifeng, the head of Guangzhou University. Litong GM issued 100 million yuan, with a lock-up period of 18 months. The limited partner of the company is GE Liangdi, the third largest shareholder and director of the company, and the general partner is the company controlled by GE Liangdi. The price of this non-public offering is 30.37 yuan per share, which is 80% of the average stock trading price in the first 20 trading days. After deducting the issuance costs, it will be used to repay 220 million of the bank loan and 480 million of the supplementary liquidity.
The purpose of this public offering is to enhance capital strength, promote the implementation of the company's strategy and supplement liquidity. On the basis of the existing industrial layout, the company further expand the market, speed up the deployment of data business core base, achieve business scale, intensive development, consolidate and expand market share. We expect the company to increase this time will enhance the financial strength, continue to the core business direction IDC, MCN and other business investment development. According to the company's previous expectations, IDC will continue to expand to 30,000-50,000 cabinets, while MCN will continue to invest in the construction of Taobao, Kuaishou Technology, Pinduoduo and other teams, as well as intelligent transformation of the company's operation and maintenance.
The company disclosed its 19-year performance on the evening of February 28, KuaiBao, with an outstanding performance. In 19 years, the company achieved an operating income of 1.4 billion yuan, an increase of 109.33% over the same period last year; the net profit returned to the home was 120 million yuan, an increase of 196.53% over the same period last year, including 90.4666 million yuan in non-recurrent expenditure resulting from debt exemption, and the company is expected to deduct 200 million non-profit. At the beginning of the year, the new sectors of IDC services (freshman in Guangzhou) and value-added telecom services (Hangzhou Wochi) have better benefits and make a significant contribution to the net profit in the reporting period, resulting in a substantial increase in the operating performance of enterprises.
The company's follow-up with Ruhan in-depth cooperation is expected, is expected to join hands to increase the development of MCN. According to the investor relations records disclosed by the company, the company will carry out strategic cooperation with head online celebrity company Ruhan to strengthen the coordination of online celebrity resources between the two sides. If the latest 20Q3 performance is disclosed on March 3, the online celebrity business income (service income under the platform business) is growing rapidly, with the service income under the platform business reaching 110.7 million yuan ($15.9 million), an increase of 67.2 million yuan or 154% over the 43.5 million yuan in the same period last year.
Investment point of view: this time, senior executives are determined to increase the company's capital strength, demonstrate long-term confidence, and continue to be optimistic about the company's business development. The company grew strongly in the first quarter. The overall business volume of Hangzhou Waci's mobile reading business and e-commerce with goods affected by the epidemic increased rapidly. Follow-up cooperation with Ruhan and opening up new channels to bring goods are worth looking forward to. The prosperity of superimposed communications, security and IDC business continues to improve. We estimate that the company's 19-21 net profit will be 1.32 million 406 million yuan respectively, regardless of dilution corresponding valuation of 91x/29x/21x. Continue to strongly recommend and maintain the "buy" rating. At the same time, we are optimistic about the growth flexibility of MCN subdivision track, which is in line with the direction of policy encouragement and the development direction of e-commerce and marketing industry. We have deeply explored track investment opportunities in the past 20 years. Recently, we closely remind us to pay close attention to the increase of market attention along with the recovery rate of logistics.
Risk tips: increased market competition, industry supervision, technology update, accounts receivable and other risks.