NetSun Acquires China Apparel Network, Taking Steps towards Acquisition Expansion
The first Chinese internet company to be listed in China, NetSun Technology (002095.SZ, hereinafter referred to as "NetSun"), announced today that it has reached a merger and acquisition agreement with China Apparel Network. The company will invest 10.74 million yuan to acquire 51% of the shares of China Apparel Network, at a premium ratio of 3.2:1.
This is NetSun's first implementation of a merger and acquisition since its listing.
NetSun Technology officially entered the A-share market on December 4th last year, with an issue price of 14.09 yuan, raising a total of 210 million yuan. The stock became a highly sought-after high-priced stock among investors, once reaching a peak of 78 yuan. Yesterday, NetSun closed at 57.58 yuan, down by 1.4%, with a dynamic P/E ratio of about 86 times.
"NetSun has thus unveiled the prelude to integrating industry websites," said Sun Deliang, chairman of NetSun Technology. In the future, the company plans to enter more industries through new establishments, holding stakes, or participating in shareholdings. Machinery and food will be the industries that NetSun is currently focusing on closely.
This time, NetSun has injected China Apparel Network into its strategic product "Business Treasure". "Business Treasure" is a commercial portal and search platform based on an alliance of industry websites. It integrates the content, traffic, and other resources of various professional websites to form a model of "small portals + alliances". NetSun plans to invest 50 million yuan to build the "Business Treasure" platform.
The core business of NetSun is its multiple vertically integrated industry websites under operation, such as China Chemical Network, Global Chemical Network, China Textile Network, Medicine Network, etc. Its main profit model is "membership fee + advertising." Sun Deliang currently hopes to promote the model of China Chemical Network to create more leading vertically integrated industry websites.
According to NetSun's 2006 annual report, its main business revenue was 62.798 million yuan, a decrease of 1.48% compared to the previous year; net profit was 28.129 million yuan, a decrease of 3.07% compared to the previous year; earnings per share were 0.47 yuan, a decrease of 26.56% compared to the previous year.
An analyst from Shenwan Hongyuan believes that NetSun's growth has already passed the rapid development stage and entered a steady development period. If it wants to sustain a high P/E ratio in the long term, new businesses must significantly boost performance.
Related Links
China Apparel Network was founded in July 2001 and is a leading website in the apparel industry. Currently, China Apparel Network has over 300,000 registered members, with a daily average page view of 3 million, ranking first among apparel industry websites. In 2006, its main business revenue was 6.4696 million yuan, with a net profit of 227,500 yuan.
Source: NetEase Technology
Searched information:
Home_page_Zhejiang NetSun Technology Co., Ltd!
Subsidiaries:
[The rest of the document continues detailing specific subsidiaries and their services in English.]