On the morning of July 26th, at a media interview with the theme of "Beautiful China Led by Zhonglian", Jiao Wanjiang, spokesperson for Yingfeng Environment (000967), stated that the restructuring of Zhonglian Environment by Yingfeng Environment is a strong integration. The company will strive to make more advanced and high-quality environmental protection products and systems by integrating the resource advantages of both parties, providing more comprehensive and effective environmental services, and making due contributions to the development of China's environmental protection cause.
Previously, on July 17th, Yingfeng Environment released a major asset restructuring report, intending to acquire 100% equity of Zhonglian Environment for 15.25 billion yuan through issuing shares. After the completion of this merger, Zhonglian Environment will restructure and enter the Yingfeng Environment listed company platform, mutually realizing capital expansion, business expansion, market expansion, and technology expansion, entering a new stage of development.
The acquisition and restructuring of 15.25 billion yuan is currently the largest case in the domestic environmental protection industry. After the completion of this merger, Yingfeng Environment's annual revenue will reach nearly 15 billion yuan, making it one of the largest private environmental protection leading enterprises in China.
It is reported that in the environmental protection industry, Yingfeng Environment is a "rising star". The company's predecessor was Shangyu Wind Turbine Factory, founded in 1974. It was listed on the Shenzhen Stock Exchange in March 2000 and began a strategic transformation to fully enter the environmental protection industry in 2015. Through a series of capital operations, it has quickly become a high-quality private environmental protection enterprise in China in just three years and gradually completed the layout of the entire industry chain of the environmental protection industry. Its business has covered environmental monitoring, water environment treatment, air treatment, solid waste treatment, soil remediation, environmental operation services, etc., providing sustained momentum for the long-term development of the company in the environmental protection field.
The target company, Zhonglian Environment, is a comprehensive environmental industry enterprise that integrates the research and development, manufacturing, and investment operation of high-tech equipment such as environmental sanitation machinery and environmental equipment. Currently, it has the largest product matrix of environmental sanitation equipment in China and even globally. According to data provided by the China Automotive Technology Research Center, Zhonglian Environment's environmental sanitation equipment product line has occupied almost one-third of the market share of the entire industry for consecutive years, making it a true leader in the environmental sanitation industry.
The relevant person in charge of Yingfeng Environment stated in an interview that this is an important step to fully utilize the capital operation platform for outward expansion and improve its strategic map of "comprehensive environmental service provider in the entire industry chain". After the merger and acquisition is completed, the listed company and the target company will have a synergistic effect. The existing garbage disposal business of the listed company will be extended to the upstream environmental sanitation equipment field and the integrated environmental sanitation service field, while achieving mutual interaction and supplementation in business layout, project experience, channel resources, and other aspects.
It is reported that through restructuring, the listed company will hold 100.00% equity of Zhonglian Environment, which will become a wholly-owned subsidiary of the listed company and be included in the scope of consolidated financial statements. During the profit commitment period of 2018, 2019, and 2020, eight shareholders including Ningbo Yingfeng promised that the consolidated financial statements achieved by Zhonglian Environment, after deducting non recurring gains and losses, would belong to the parent company of no less than 997 million yuan, 1.23 billion yuan, and 1.495 billion yuan respectively, with a cumulative net profit of no less than 3.722 billion yuan. After being included in the scope of the merger of the listed company, it will improve the profitability of the listed company.
