* Upon completion of the transaction, Shanghai Prime will become a wholly-owned subsidiary of SMEIC.
Shanghai Prime, a large-scale industrial group specialising in the manufacture of industrial basic parts and key components and related services, is a subsidiary of
With the accelerating reshaping of the global industrial chain, adhering to innovation-driven development and consolidating the independent and controllable capability of the key and core technologies of industrial chain has become increasingly important for the security and stability of manufacturing industry. Furthermore, the rapid development of the digital economy and the promotion of the "dual-carbon" goal have also brought forward new requirement for the development of
This transaction will boost the strategic upgrade of SMEIC, clarify the positioning of the Company as a "professional, refined, featured and innovative" industrial platform, further broaden its industrial basic parts, key components and parts, sub-system and mechatronics products, build a diversified product portfolio, and give full play to the attribute of SMEIC as a listed company capital platform as well as the advantageous position of Shanghai Prime in the field of industrial basic parts and key components and parts, to help the Company to rapidly realise the product extension for its "professional, refined, featured and innovative" businesses along the current industrial chain, reinforce the industrial basic parts business portfolio, push the "professional, refined, featured and innovative" industrial segment of the Company's industrial basic parts business to develop towards being high-end, serialised and integrated, and accelerate the upgrade of the domestic industrial basic parts industry, serving the manufacturing power strategy of our country.
Besides, this transaction will help SMEIC to gradually expand its business scope from lift industry with stable development to basic parts aerospace, new energy automobile, robotics, medical equipment and other industries with more promising growth prospects. After the resource integration, SMEIC will strive to achieve the "three new" development, namely new technology, new products and new markets, through continuous technological innovation, the extension of upstream "professional, refined, featured and innovative" business line, and the development of domestic strategic application and overseas "new" markets of the Belt and Road Initiatives, helping SMEIC to build the "second growth curve" based on the "professional, refined, featured and innovative" with the synergy through the diversification of the products and markets while maintaining the healthy and steady development of the primary industry, forming a new development pattern featuring dual-wheel driver.
Furthermore, this transaction will also be conducive to the adjustment and optimisation of the Company's industrial structure. After the completion of this transaction, SMEIC will become one of the world's largest comprehensive industrial basic parts conglomerates by virtue of a relatively wide range of products offerings and a relatively large scale of operation, continuously improving its assets quality and profitability, creating further room for its future development as a listed company, further enhancing its value in the capital market and creating more returns to shareholders.
According to the data, Shanghai Prime has sound main business and operating condition. In 2022 and 2023, the revenue of Shanghai Prime amounted to
If Shanghai Prime is merged into SMEIC, the earnings per share of SMEIC for 2022 and 2023 will represent an increase of 35.42% and 23.47% respectively over that before the merger. In terms of revenue sources, in 2022 and 2023, the proportion of revenue of SMEIC from its "professional, refined, featured and innovative" related businesses will significantly increase from 1.94% and 2.61% before the merger to 29.00% and 31.87% after the merger, resulting in obvious optimisation of its business structure.
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