SYP Intends To Buy 100% Of AGC For 305 Million

Yao PI Glass announced on the evening of December 23 that the company signed the "Equity transfer Agreement" with AGC Co., LTD., and planned to buy 100% equity of the latter's wholly-owned subsidiary Aijiexu Special Glass (Dalian) Co., LTD., with 305 million yuan. According to the financial calculation, the internal rate of return of total investment after the project income tax is 8.2%, the static payback period is 9.4 years, and the rate of return is 5.2%. The matter has been reviewed and approved by the board of directors and has been reported to state assets for the record.

According to the announcement, Aijiaxu Special Glass (Dalian) Co., LTD. (" Aijiaxu/Target Company ") is a float glass manufacturer with on-line coating LOW-E technology. Its products mainly include on-line coating LOW-E glass for automobiles and home appliances, ultra white glass for solar thermal power generation, TCO glass for solar photovoltaic, electronic glass and automobile float glass original, etc. In particular, the ultra-thin online coating LOW-E glass applied in the global automotive field and the thermal power glass applied in China's concentrating solar energy field have absolutely leading technology and occupy an absolute advantage in the market share. As early as 2016, the target company successfully produced TCO glass applied in chromium telluride thin film power generation, and is the first manufacturer to commercially produce solar photovoltaic TCO glass in China.

Yao PI Glass currently has four float glass lines and two special glass lines, with high-end automotive glass, construction and industrial coated glass, ultra-white glass production lines, and a lack of ultra-thin online coated glass and solar power glass production lines, the announcement said. After the acquisition of Aijiaxu, through the integration and optimization of the float glass line products, it can not only make up for the company's float glass products and production capacity, but also fill the vacancy of business in northeast China, and basically complete the overall layout of the company along the river and the coast. In addition, the acquisition will improve the company's self-sufficiency rate of raw glass, improve the processing glass sector's resistance to the risk of supply changes in the raw glass market, and is of great significance for the company to enter the field of new energy vehicles, solar power generation and electronic glass.

According to regular reports, the company's float glass plate in the face of the domestic float glass industry since this year in the upstream raw fuel prices rose sharply, the downstream automotive glass and construction industry glass demand significantly reduced the price downward two-way extrusion, active response. On the one hand, give play to the two places and four lines of professional production mode, priority production of high value-added products; On the other hand, we continue to actively explore the international market, maintain a high yield of black glass, and successfully enter Uzbekistan, Russia and other new markets. In the first three quarters, the company achieved a total revenue of 3.449 billion yuan, with a year-on-year growth of 1.85%; In the third quarter, total revenue was 1.322 billion yuan, up 7.34 percent year-on-year.