EMEI SHAN(SZ:000888) Zhong Guo Jing Ying Bao·2025-05-24 05:42Core Viewpoint - Emei Mountain Tourism Co., Ltd. has announced the termination of an asset acquisition plan that was initiated nearly 10 years ago, specifically related to its tea production project, due to regulatory issues regarding land use [2][5]. Group 1: Acquisition Plan Details - The acquisition plan was initiated in 2015 and involved the second and third phases of the Emei Snow Bud tea production project, which was funded by a capital increase in 2013 that raised approximately 480 million yuan, with 190 million yuan allocated to the tea project [3][4]. - The assessed value of the assets intended for acquisition was approximately 84.15 million yuan, with a negotiated purchase price of 55.40 million yuan after deducting unpaid engineering costs of 27.29 million yuan [3][4]. - The acquisition was intended to enhance the "Greater Emei International Tourism Zone" by extending the project's functions to include tourist services and brand displays [4][5]. Group 2: Reasons for Termination - The termination was due to the land being classified as industrial use, which, according to policy, cannot be subdivided or converted for other uses, making the planned land division unfeasible [5][6]. - Despite multiple negotiations with local government departments, the company was unable to obtain the necessary land ownership certificates, leading to the failure of the acquisition [5][6]. Group 3: Project Status and Financials - The tea project was reported to have reached a production capacity of 150 tons per year, with expected annual revenues of 200 million yuan and net profits of 28 million yuan [6]. - As of April 30, 2024, the project had utilized approximately 161 million yuan of the raised funds, achieving a funding usage rate of 89.37%, with minimal progress since 2016 [7]. - The project had experienced negative returns since 2015, with only two years (2019 and 2021) showing positive results [7].