Benefiting from the synergy of the entire industrial chain, the continuous improvement of the application and operation efficiency of intelligent manufacturing, the support of the national industrial policy and the continuous improvement of the market demand, the profit of the main business of Shanying International in 2018 was greatly increased compared with the same period of last year.
The Company disclosed the pre-increase announcement on January 15, and the net profit attributable to shareholders of the listed company in 2018 was RMB 338.0 million yuan, an increase of 68% year-on-year. The net profit of deducting non-recurring profits and losses attributable to shareholders of the listed company is RMB 276,000 million yuan, an increase of 38% year-on-year. According to the calculation, the net profit of stock business increased from 1.975 billion yuan in 2017 to 2.35 billion yuan, an increase of 18.99% after deducting the impact of the acquisition of Nordic Paper Industry, Liansheng Paper Industry and Phoenix Paper Industry.
The Nordic Paper and Liansheng Paper have brought greater revenue growth to Shanying Paper Industry. According to the Company’s disclosure, the estimated net profit of the Nordic Paper Industry and Liansheng Paper Industry included in the merger scope for the whole year is about RMB 630 million Yuan. It is worth mentioning that in September 2018, Shanying International completed the interview with Verso Wickliffe LLC (now renamed as Phoenix PaperWickliffe LLC The acquisition of 100% shares by Phoenix Paper Co., Ltd. has increased the net profit attributable to shareholders of the listed company by about RMB 360 million because the purchase consideration is lower than the fair value of its identifiable net assets. On January 11, 2019, Beijing Zhongqihua Assets Appraisal Co., Ltd. issued the Appraisal and Consultation Report on Share Purchase Price of Phoenix Paper Co., Ltd., which was purchased by Shanying International .
As of September 6, 2018, Phoenix Paper had a net assets valuation of $13,446,600, or about 92.923,600 yuan, according to the report. The value-added value of the appraisal is 81,86664 million yuan, calculated by 60% of the indirect holding target of Shanying International, and the impact on the net profit of Shanying International is about 36 million yuan. It is understood that in July 2018, Zhejiang Shanying Paper Co., Ltd., a wholly-owned subsidiary of Shanying International Holdings Co., Ltd. (Hereinafter referred to as “Zhejiang Shanying”) The indirect controlling subsidiary Global Win and Verso Paper Holding LLC (hereinafter referred to as Verso Company) signed the Equity Purchase Agreement in August 2018. Global Win paid $16 million to buy a 100% stake in Phoenix Paper. Global Win and Verso have completed their delivery on September 6, 2018, Beijing time. Since the Closing Date, Global Win has a 100% stake in Phoenix Paper. Upon completion of this acquisition, the Company will transform the existing equipment of Phoenix Paper Industry into a packaging paper production line.
This equity acquisition helps the company expand the North American market and deepen the global layout. Designed to directly open up the North American packaging market, the company’s continued growth as a new driving force. Shanying International is the only enterprise in China that owns the purchasing channel of recycled fiber and the production of packaging base paper and extends down to corrugated board and carton business. With the advantage of industrial chain integration, the company realizes recycled fiber. Co-development of the three paper and packaging business, committed to provide customers with integrated upstream and downstream solutions. In the long run, this acquisition will further strengthen the global strategic layout of the company and continuously enhance the international management capability of Shanying. The content of this article is from China Wealth Network