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China Fund News reporter Nan Shen

Under the par value delisting clause, companies with share prices approaching 1 yuan are undoubtedly under great pressure. On the evening of July 30, Baoying Shares, a "1 yuan stock" whose share price once fell to 1.32 yuan, received good news.

Bauing Holdings issued an announcement.Hengqin Group, which is actually controlled by Zhuhai State-owned Assets Supervision and Administration CommissionThe company intends to make a tender offer for 212 million shares, accounting for 13.95% of the total issued shares of the company. The offer price is RMB 1.6 per share。

After the completion of this tender offer,Hengqin Group directly holds up to 33.41% of Bauing sharesTogether with the shares of its subsidiaries and the shares voted under proxy, Hengqin Group will hold a maximum of 51% of the voting rights of the total issued shares of Baoying Shares, achieving absolute control.

Baoying Co., Ltd.'s main business is decoration and furnishing. Affected by the adjustment of the real estate industry, the company has suffered huge losses for three consecutive years and its stock price has also been falling.Bauing shares said that the purpose of the tender offer by Hengqin Group is to further increase its shareholding ratio in Bauing shares, boost investor confidence and stabilize the share price.。

The controlling shareholder intends to increase its holdings

The tender offer price is approximately 5% lower than the current price

According to the announcement of Baoying Shares, the offeror for this tender offer is Zhuhai Da Hengqin Group Co., Ltd. (hereinafter referred to as Da Hengqin Group), which is also the company's controlling shareholder.Hengqin Group is a state-owned enterprise directly under the Zhuhai State-owned Assets Supervision and Administration Commission established in April 2009.

The announcement stated that Hengqin Group, based on its confidence in the future development prospects of the listed company and its recognition of the value of the listed company, decided to stabilize the stock price and effectively safeguard the interests of the majority of investors and promote the continuous, stable and healthy development of the listed company.The company will increase its holdings of listed company shares through a partial tender offer to further increase its shareholding ratio in Baoying Shares and boost investor confidence.

The tender offer plan for this time is: Da Hengqin Group will issue a partial offer to all the unrestricted tradable shares of Bauing Shares held by all shareholders of Bauing Shares except Da Hengqin Group, Da Hengqin Shares (Hong Kong) Co., Ltd., Zhuhai Aviation City Development Group Co., Ltd., and Gu Shaoming. The offer price is 1.6 yuan per share, and the number of shares to be acquired through the tender offer is 212 million shares, accounting for 13.95% of the total number of shares issued by Bauing Shares.

The tender offer period is a total of 30 calendar days, from August 1, 2024 to August 30, 2024.After the expiration of the tender offer period, if the number of shares accepted for the tender offer is less than or equal to the number of shares scheduled to be tendered under the tender offer of 212 million shares, the acquirer will purchase the shares accepted for the tender offer in accordance with the terms and conditions of the tender offer; if the number of shares accepted for the tender offer exceeds 212 million shares, the acquirer will purchase the shares accepted for the tender offer in the same proportion.

After the completion of this tender offer, Da Hengqin Group will directly hold up to 33.41% of Bauing shares, and its wholly-owned subsidiary Da Hengqin Hong Kong Co., Ltd. will hold 2% of the shares. At the same time, Aviation City Development Group and Gu Shaoming will entrust the voting rights corresponding to their 11.54% and 4.05% of Bauing shares respectively to Da Hengqin Group.Hengqin Group will hold a maximum of 773 million shares of voting rights in Bauing Holdings Group, accounting for approximately 51% of the total issued shares of Bauing Holdings Group.。

After the announcement was issued, many netizens in the Bauing Stock Forum were excited, expecting the stock price to rise sharply or even reach the daily limit the next day. However, the reporter noticed that the offer price of 1.6 yuan per share was about 5% lower than the company's closing price of 1.68 yuan per share on July 30.

Baoying shares mainly engaged in decoration

Performance and stock price under pressure in the past three years

Bauing Co., Ltd. was established in 1993 and listed on the Shenzhen Stock Exchange in December 2013. In January 2020, Bauing Co., Ltd. took the lead in completing mixed ownership reform in the construction and decoration industry. The controlling shareholder became Zhuhai Da Hengqin Group and the actual controller became Zhuhai State-owned Assets Supervision and Administration Commission.

As a holding platform listed company, Bauing Group mainly conducts various businesses through its wholly-owned subsidiaries Bauing Construction and Bauing Construction Technology. It is committed to providing comprehensive, integrated, full-process services including architectural decoration engineering design, comprehensive construction solutions and construction management to customers such as large enterprises, high-end hotels, government agencies, multinational corporations, and large real estate projects.

In recent years, affected by the adjustment of the real estate industry, both the performance and stock price of Baoying Group have been under pressure.

From 2021 to 2023, Bauing's operating income declined for two years, and its net profit and non-net profit suffered substantial losses for three consecutive years, with a total loss of more than 4.5 billion yuan in three years. In the first quarter of 2024, the company continued to lose more than 72 million yuan, and in the first half of 2024, it is expected to lose 200 million to 240 million yuan.

The latest market value of Bauing shares is only 2.547 billion yuan, which is more than 90% less than the peak of the bull market in 2015. From 2021 to now, its market value has also shrunk by more than 50%. As of June 28, 2024, the company has 46,300 shareholders.

Editor: Captain

Review: Xu Wen

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