On October 10, Red Lion Group issued an announcement on the progress of major investment activities. The company has paid about 6.762 billion yuan for the transfer of shares of Asia Silicon Industry , accounting for about% of the total amount of the transfer of shares of the target. The remaining transfer amount is about 1.36 billion yuan , which is expected to be paid in April 2024.
This is the first time that Red Lion has disclosed the progress of the acquisition since the Asian Silicon Industry acquisition was finalized on March 22 this year. In March
this year, Red Lion Group announced that it would eventually acquire about 181 million shares of Asia Silicon, accounting for 68.02% of the total share capital, with a total share transfer of about & nbsp; 8.122 billion yuan . After
the acquisition, Red Lion Group will replace Shi Zhengrong and his wife as the new controllers of the Asian silicon industry and become a giant in the field of polysilicon.
According to public information, the Asian silicon industry is mainly engaged in polysilicon business, followed by the operation of photovoltaic power plants. In addition, electronic gases and photovoltaic modules also contribute a small amount of revenue to the company. Before being acquired by
Red Lion, the company had 90000 tons of polysilicon production capacity, ranking sixth in China and seventh in the world.
From 2020 to 2022, the company's revenue was 1.553 billion, 10.832 billion and 11.057 billion respectively. However, the company's revenue is particularly affected by the price fluctuation of silicon materials. Asia Silicon Industry mentioned in its previous prospectus that "the company's operating performance and profitability are greatly affected by the price change of polysilicon. If the price of polysilicon falls sharply again in the future, the company will face the risk of gross interest rate decline and operating performance fluctuation".
It is worth noting that the outside world believes that the sale of Red Lion in Asia Silicon Industry is related to the failure of its previous three sprint IPOs. Because of the gambling agreement, the failure of the listing of Asia Silicon Industry, in fact, the controller Shi Zhengrong will need to pay a lot of money to buy back shareholders'shares.
In this context, the Red Lion Group, which seeks transformation, has come to the door of the Asian silicon industry. According to
the data, Red Lion Group is a leading private enterprise mainly engaged in building materials, environmental protection, finance and other three major business sectors. It has been deeply engaged in the cement industry for many years. It has more than 50 large-scale cement enterprises in 10 provinces in China and Laos, Nepal, Indonesia, Myanmar and other countries, as well as a number of large-scale overseas cement bases. According to China Cement Network 2022 China Top 100 Cement Clinker Production Capacity List, Red Lion Group ranks fourth in the industry with 72.54 million tons/year clinker production capacity.
At the business conference in January this year, Zhang Xiaohua, Chairman and General Manager of Hongshi Group, put forward a new development strategy: based on the main business of cement, enter the polysilicon industry, strengthen the main business of cement, supplement the expansion, speed up the layout of polysilicon industry, form a scale, and build a "cement + polysilicon" dual business pattern.
Haidong Red Lion's 200,000 tons of polysilicon and 250,000 tons of industrial silicon projects have been started
on March 23, 2023. According to the statistics of Digital New Energy DNE, Red Lion Group has entered the photovoltaic field before the acquisition of Asian Silicon Industry. In 2022, the company established six new energy companies, focusing on solar power generation and transmission and distribution business. At the same time, Red Lion also invested 15.5 billion yuan and 29.5 billion yuan respectively to build 2 * 50000 tons of polysilicon in Aksu, Xinjiang and Qinghai, with an annual output of 120000 tons of raw material industrial silicon. 3GW crystal pulling and slicing projects and projects with an annual output of 200,000 tons of polysilicon and 250,000 tons of industrial silicon. The future of Asian silicon industry is just around the corner under the big hand of
Red Lion Group.
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