BEIJING, May 28 (Xinhua) -- Xinhu Zhongbao Co.,Ltd. announced on Sunday that it planned to reach an investment cooperation with Hangzhou Qulian Technology through its wholly owned subsidiary Zhinao Investment under which Zhinao would buy the 1.9 million yuan capital contribution of five Qulian shareholders for 109 million yuan, and also spend 1.121 billion yuan to subscribe 19.5929 million yuan new registered capital of Qulian.
Zhinao would hold 49 percent in registered capital of Qulian Technology after the deal.
Qulian’s core technology is fully autonomous domestic consortium blockchain platform - Hyperchain.
Qulian had total assets of 42.7724 million yuan as of December 31, 2017, with owners’ equity standing at 38.1893 million yuan. The company realized operating revenue of 1.8464 million yuan in 2017 with a net loss of 15.2174 million yuan.
The announcement said that relevant parties agreed on 1.5 billion yuan of pre-investment valuation for Qulian after employee stock ownership plan completes.
However, the announcement was questioned by Shanghai Stock Exchange which pointed out that the valuation was 500 million yuan in April of 2018 when Xinhu Zhongbao obtained part of Qulian’s equity. The stock exchange asked for the reason as well as rationality of the big increase in valuation and required Xinhu Zhongbao to give risk warning for future operation uncertainty. (Edited by Niu Huizhe, niuhuizhe@xinhua.org)
A single purchase
