Jihong shares issued an announcement to stop the acquisition of Gujiao Liquor

In June this year , Jihong Co., Ltd. issued a suggestive announcement on equity acquisition. From the content, the company intends to acquire no less than 70% of the equity of Guizhou Diaotai Gong Liquor Co., Ltd. through methods including but not limited to equity transfer and capital increase, and then hold the assets of Gujiao Liquor Co., Ltd. in Maotai Town, Renhuai City, Guizhou Province.

When many people thought that Jihong would enter the wine industry, on October 20, Jihong Co., Ltd. issued another announcement to terminate its intention to acquire equity.

As for the reasons for the termination of this purchase, the announcement shows that due to changes in the market macro environment and other reasons, the company decided to terminate this acquisition, and the two parties to the transaction have reached a consensus on the termination of related matters. At the same time, Jihong emphasized that the termination of this acquisition will not affect its financial status and operating conditions.

Xiamen Jihong Technology Co., Ltd. was established in 2003 with a registered capital of RMB 378,409,288. Its main business is fast-moving consumer goods display packaging, and it mainly serves customers in the fast-moving consumer goods industry. The company's cross-border e-commerce business mainly promotes online B2C sales through independent station advertisements on foreign social networking platforms such as Facebook, Google, Tik Tok, Line, YouTube, and Instagram, and sells products across borders to Southeast Asia, Northeast Asia, the Middle East, etc. A diversified strategy has been adopted on the platform.

According to its 2021 first half financial report, the scale of Jihong's cross-border e-commerce business orders in the first half of 2021 increased by more than 60% compared with the same period last year, maintaining its leading position in Southeast Asian independent e-commerce. During the reporting period, its main business revenue reached 2491.1726 million yuan, a year-on-year increase of 29.97%, and the net profit attributable to shareholders of the listed company was 181.5209 million yuan , a decrease of 29.66% from the same period last year , and earnings per share was 0.48 yuan . Net cash flow was 192.5350 million yuan, and the net cash ratio reached 1.08.

The report shows that due to the decline in sales of epidemic prevention materials in the first half of 2021, the company's net profit was less than 300,000 yuan, a large decline, which had a certain impact on its revenue.

Although this cross-border acquisition has been terminated, Jihong Co., Ltd. stated that it will not have any impact on its liquor industry.

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