Termination of the acquisition of Deqingyuan Jialinjie major shareholder plans to increase their holdings of their own shares

China Securities Network (Reporter Liu Xianghong) due to the general meeting of shareholders failed to Deqingyuan through asset restructuring proposal, the evening of October 26, Jialin Jie 002,486, it announced the termination of the acquisition of shares attending egg brands Deqingyuan of; also announced The company's controlling shareholder Dongxu Group plans to increase its shareholding in the company within 12 months from November 1, 2017, with an increase of not less than 100 million yuan and no more than 400 million yuan. The company's stock will resume trading on November 27.

Deqingyuan is a national key leading enterprise in agricultural industrialization. It focuses on the “ecological egg” of the whole industrial chain model. It was listed on the New Third Board in 2016 and achieved revenue of 587 million yuan. In order to create a new profit growth point and achieve sustainable development of the company, in April this year, Jia Linjie, whose main business is textile, began to plan a major asset restructuring with Deqingyuan. At the end of September, the acquisition plan was announced. The company plans to acquire a 50.47% stake in Deqingyuan through a total of RMB 1.234 billion through cash payment and capital increase. This acquisition, which was optimistic about the outside world, was not passed at the temporary shareholders meeting of Deqingyuan on October 25. The company had to terminate the acquisition.

In fact, for Jia Linjie, "breaking up" is not necessarily a bad thing. Although Deqingyuan has achieved a certain market position with multiple rounds of financing and heavy investment in the heavy asset model, the Chinese egg market, which is still in its infancy, still faces the dilemma of disorder, disorder and low return on investment. From the product attributes, eggs are special fast-moving products, which have both food safety risks and large risks of control. According to the data, about 60% of the eggs in China are currently distributed through retail farming and wholesale markets. Most of the eggs have no brand. Subject to the consumption habits of the domestic population, the growth of the brand egg market still has a long way to go. The company's share price performance since the resumption of trading on September 28 also reflected the market's attitude towards the acquisition. The opening price of 8.4 yuan / share all the way down to the closing price of 6.82 yuan / share on the 25th, a drop of more than 18%.

As a research and development, design, production and sales of high-end outdoor sports functional fabrics, Jialinjie has been resisting the risks of rising raw materials and labor costs and increasing market competition in recent years, and actively seeks opportunities for other industries. The company stated that the termination of this major asset restructuring will not affect the normal operation of the company. The company will combine the development strategy to further improve the industrial layout and adopt various measures to enhance the company's competitiveness and improve the company's operating performance. It is understood that the company will continue to look for new high-growth assets for mergers and acquisitions.

At the same time as the termination of the acquisition of Deqingyuan, Jialinjie also announced that Dongxu Group will be based on the confidence in the company's future development prospects and the recognition of the company's long-term investment value, and will be legally regulated within 12 months from November 1. The permitted methods (including but not limited to centralized bidding and block trades) will increase the shareholding of the company through the secondary market. The proposed increase in holdings is not less than 100 million yuan and not more than 400 million yuan. At present, Dongxu Group directly holds 8.45 million shares of the company and indirectly holds 163.19 million shares of the company through Shanghai Guojun Investment Co., Ltd., with a total shareholding ratio of 20.63%.