DIT Group Limited (0726.HK)

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Glodon acquires a 33% premium in Zhuyou Zhizao Technology (00726.HK).

source
https://cj.sina.com.cn/articles/view/5115326071/130e5ae7702001fz6w

August 20, 2021

On August 20, Zhuyou Intelligent Manufacturing Technology Group Co., Ltd. (stock code: 0726 HK), a listed section of Zhuyou Group, issued an announcement stating that Zhuyou Intelligent Manufacturing Technology intends to cooperate with Glodon Technology Co., Ltd. signed an equity subscription agreement. Glodon intends to subscribe for 300 million shares issued by Zhuyou Zhizao Technology through its Hong Kong subsidiary with a capital of 288 million Hong Kong dollars, at a subscription price of 0.96 Hong Kong dollars per share. It accounts for 9.67% of the issued share capital of Zhuyou Zhizao Technology after the issuance.

It is worth noting that as of the close of the market on August 20, the share price of Zhuyou Zhizao Technology was HK$0.72, and the purchase price (HK$0.96 per share) exceeded the current share price by 33%.

The 2021 semi-annual report of Zhuyou Zhizao Technology shows that for the year ended June 30, 2021, the company achieved operating income of HK$594 million in the first half of 2021, a year-on-year increase of 48%; gross profit of HK$170 million, a year-on-year increase of 185%, net Profits increased by 185% year-on-year; mid-year surplus funds were HK$490 million, a substantial increase of 94% year-on-year; the main business income of PC components and patent licenses reached HK$498 million, a year-on-year increase of 35%, showing solid performance Growth trend.

In addition, the announcement also pointed out that Glodon is a leading company in the construction engineering information market in China. The business cooperation and synergy potential between the two parties is huge, which may generate higher economic and operational efficiency and increase investment returns. The announcement disclosed that the two parties agreed that the 90 million Hong Kong dollars in the raised funds will be used for digitalization and software development related to the construction industry.

Public information shows that Glodon’s business covers design, cost, construction, operation and maintenance, supply and procurement, parks, as well as finance, universities, investment and mergers and acquisitions, and other fields, covering tool software, solutions, big data services, mobile apps, cloud computing services , Smart hardware equipment, industrial financial services and other business forms, has established more than 80 subsidiaries around the world, serving customers in more than 100 countries around the world, and has provided nearly 100 professional application products and services to 310,000 corporate customers.

Zhuyou Intelligent Manufacturing Technology is an innovative high-tech enterprise focusing on the entire industrial chain of prefabricated construction, and is also the first listed company in the prefabricated construction industry. The company's main business is prefabricated construction, smart gardening and smart decoration. It has deployed 44 smart digital factories in 46 provinces across the country. The company has always adhered to the development strategy of "leading technology", has the industry's world-leading five core technology systems, has mastered core technologies such as BIM, Internet of Things, big data, and artificial intelligence in the field of smart construction. The number of independent research and development patents has consistently ranked first in the industry. One.

"Accelerating digital development and building a digital China" is an important part of the country’s 14th Five-Year Plan. With the in-depth advancement of new-type urbanization and construction industry supply-side reforms, the future development prospects of digital construction industry are broad. The joint entry of ministries and enterprises may mean that the start-up of the new track of digital construction in the construction industry has begun.