Core Viewpoint - Reliable Co. plans to acquire at least 60% of Shanghai Hanhua Paper Industry Co., Ltd. for cash, with a valuation of no more than 650 million yuan for 100% equity, aiming to enhance its market presence and overseas channels [1] Group 1: Acquisition Details - The acquisition is in the planning stage, with financial audits and asset evaluations yet to be conducted, making it difficult to assess its impact on the company's current year performance [1] - Hanhua Paper's main products include various types of paper products, primarily exported to Japan, South America, and Europe [1] - The acquisition is seen as a horizontal extension of the company's industrial layout, facilitating strategic complementarity between product lines and overseas channels [1] Group 2: Company Overview - Reliable Co. specializes in the design, research, production, and sales of personal hygiene products, having transitioned to focus on adult incontinence care products since 2008 [2] - The company generated 626 million yuan from domestic operations in 2024, accounting for 58.03% of total revenue, while overseas operations contributed 453 million yuan, representing 41.97% [2] - The company has initiated its own brand's cross-border business, which is expected to enhance international market development efficiency post-acquisition [2] Group 3: Financial Performance - In the first three quarters of the year, Reliable Co. achieved a revenue of 829 million yuan, a year-on-year increase of 5.12%, and a net profit of 27.98 million yuan, up 26.79% [2] - The operating cash flow reached 89.72 million yuan, reflecting a significant year-on-year growth of 136.29% [2] - Despite a net loss of 294,200 yuan in the third quarter, the loss margin has narrowed compared to the previous year [2] Group 4: Management and Strategic Decisions - A board member expressed concerns over the management's decision-making, particularly regarding the sale of the Dudi brand baby diapers, which is expected to incur losses in 2024 and the first half of 2025 [3] - The company defended its strategy, stating that the Dudi brand's sales were approved by the board to enhance channel collaboration and improve production efficiency, with a 61% year-on-year revenue increase in related business [3] - Overall, the company reported revenue growth in the third quarter, with a 2.1 percentage point increase in gross margin, despite net profit being affected by foreign exchange losses [3]
可靠股份拟收购汉合纸业不低于60%股权 横向延伸产业链