CCM: Shandong Longlive acquires Internet firms to construct 'enlarged health + Internet' business 09-12-2016

On 3 Aug., 2016, Shandong Longlive Bio-technology Co., Ltd. (Shandong Longlive) released a revised financial performance forecast for H1 2016. The forecast was largely revised due to the company's acquisition of Xiamen Kuaiyun Information & Technology Co., Ltd. (Kuaiyun Technology) and Winnerspring Union (Beijing) Technology Development Co., Ltd. (Winnerspring Union) and consolidated their financial statements. Accordingly, Shandong Longlive's net profit is predicted to reach USD5.65 million-USD7.50 million (RMB37.47 million-RMB49.69 million), up 21%-41% YoY.

 


Source: Baidu


On 29 July, Shandong Longlive released a succession of announcements heralding the successful acquisition of 100% equity in both Kuaiyun Technology and Winnerspring Union through stock issuance and cash payment for over USD150.88 million (RMB1 billion). More specifically,

 

  • Kuaiyun Technology: 60% from stock issuance + 40% cash payment, transaction price at USD87.51 million (RMB580 million)
  • Winnerspring Union: 50% from stock issuance + 50% cash payment, transaction price at USD65.63 million (RMB435 million)

 

Kuaiyun Technology and Winnerspring Union are now wholly-owned subsidiaries of Shandong Longlive.



 

Kuaiyun Technology, China's leading supplier of big data mining and advertising solutions, holds massive amounts of data which it collects from 50 million unique users each day. Winnerspring Union specializes in the development and operation of mobile Internet and wireless information services and content distribution on these platforms, providing a variety of value-added services for mobile phone users.

 

Shandong Longlive is a Chinese corn deep-processing enterprise. It has developed many kinds of products derived solely from corn. So far, its portfolio spans:

 

  • Functional sugars like xylo oligosaccharide, xylitol, L(+)-Arabinose (raw material: corn cob)
  • Second-generation fuel ethanol produced from waste generated by functional sugar production
  • Starch sugars like high maltose syrup and crystalline dextrose processed from corn starch (raw material: corn)

 

In the past few years, Shandong Longlive has marketed some of its end products, namely soybean milk powder (product name: Huan Chang), vinegar drinks, oral liquid (product name: Yi Chang Le) and capsules (product name: Tang Yi Kang) in an attempt to break into the enlarged health industry.

 

It is known that Shandong Longlive plans to construct an "enlarged health + Internet" business through this acquisition. It will conduct big data analysis and use APP promotion & marketing to help it accurately position health foods and functional sugars in the market, especially some of its end products. Additionally, the company hopes to seek a new source of profit growth with the help of the Internet.

  

This article comes from Corn Products China News 1608, CCM

 



About CCM:

CCM is the leading market intelligence provider for China’s agriculture, chemicals, food & ingredients and life science markets. Founded in 2001, CCM offers a range of data and content solutions, from price and trade data to industry newsletters and customized market research reports. Our clients include Monsanto, DuPont, Shell, Bayer, and Syngenta. CCM is a brand of Kcomber Inc.

 

For more information about CCM, please visit www.cnchemicals.com or get in touch with us directly by emailing econtact@cnchemicals.com or calling +86-20-37616606.

 

Tag:  corn  sugars  starch

 

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