Guanfu to Acquire Plastics B2B E-commerce Platform Sumibuy for RMB 1.7 Bln
Guanfu Modern, 3/16/16
Fujian-based bulk commodity trader Guanfu Modern Household Wares (002102.SZ) has announced that it will wholly acquire Shanghai-based plastics B2B e-commerce platform operator Sumi Information Technology (Sumibuy) for RMB 1.68 bln. Guanfu will cover RMB 1.4 bln of the acquisition through issuance of stock and pay RMB 277 mln in cash.
Sumi, established in May 2014, launched plastics e-commerce site Sumibuy.com in August that year. Sumibuy's major businesses include centralized purchasing, which means collecting multiple orders and getting stock from suppliers at a discounted price, and consignment sales, in which suppliers entrust Sumibuy to sell stock. Sumibuy's typical products include polypropylene, polyethylene, and PVC. Sumibuy plans to expand its business to include metals and logistics.
Centralized purchasing accounted for 65.45% of Sumibuy's RMB 155 mln operating revenue in 2014, with the remaining 34.55% from consignment sales. Sumibuy posted RMB 339,000 in net losses for 2014. Operating revenue for 2015 grew to RMB 2.06 bln with RMB 25.37 mln in net profit. Centralized purchasing accounted for 90.03% of revenue in 2015, while consignment sales made up 9.97%.
Sumibuy promises that net profits after deduction of extraordinary earnings for 2016-2018 will be no less than RMB 115 mln, RMB 150 mln, and RMB 225 mln, respectively.
Keywords: Guanfu 002102.SZ Sumibuy B2B e-commerce Internet M&A
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