Click to read the original article for details. On August 14, Eternal Asia announced that Shenzhen Investment Holdings Co., Ltd. (hereinafter referred to as "SIHC") had invested 1.82 billion yuan in Eternal Asia. On August 14, Eternal Asia announced that Shenzhen Investment Holdings Co., Ltd. (hereinafter referred to as "SIHC") had invested 1.82 billion yuan in Eternal Asia. The announcement specifically stated that for the company's continuous development in the supply chain industry, the two-month due diligence had concluded, and SIHC had formally declared the execution of the agreement, with the transfer of equity shares to be processed shortly. With this, SIHC holds 13.3% of shares, becoming the second-largest shareholder of Eternal Asia, while Eternal Asia Holdings' stake is reduced to 22.85%. Although there were earlier doubts about industry logic and financial pressure, as early as the evening of May 15, Eternal Asia announced that its controlling shareholder, Eternal Asia Holdings, would introduce a strategic investor—Shenzhen Investment Holdings Co., Ltd. (hereinafter referred to as "SIHC")—by transferring shares of the listed company. Eternal Asia Holdings agreed to transfer 13.3% of its shares to SIHC. After mutual agreement, Eternal Asia Holdings transferred 283 million shares at a price of 6.45 yuan per share, totaling 1.82 billion yuan. Upon completion of the transfer, SIHC would become the second-largest shareholder with a 13.3% stake, while Eternal Asia Holdings' stake would drop to 22.85%. SIHC's background is not to be underestimated. Here are seven key points about SIHC:
100% owned by the Shenzhen State-owned Assets Supervision and Administration Commission (SASAC); the former chairman of SIHC is now the director of Shenzhen SASAC.
Registered capital of 23.194 billion yuan; as of the end of 2017, total consolidated assets were 479.2 billion yuan, total liabilities were 259.3 billion yuan, 2017 operating revenue was 46.979 billion yuan, and net profit was 14.98 billion yuan.
AAA credit rating in the market, with strong financing capabilities and very low capital costs.
Has 34 subsidiaries, including a large amount of high-quality properties in Shenzhen such as Shenzhen Bay, Convention and Exhibition Center, and Futian Free Trade Zone.
Strong financial holding platform, holding stakes in Guosen Securities (33.53%), Shenzhen High-tech Investment Group (41.80%), SME Guarantee Group (74.53%), and Guoren Property & Casualty Insurance (formerly Xinda P&C Insurance, 41%), and is the second-largest shareholder of Ping An Insurance (5.27%) and Guotai Junan Securities (6.99%).
In addition to the above, its listed companies include Tongchan Lixing, Shenzhen Special Economic Zone Real Estate, Shenzhen Textile, and Yitu Information.
In recent years, it has expanded rapidly, completing acquisitions of SME Guarantee Group, Xinda P&C Insurance, and Hopewell Highway Infrastructure, with total M&A investment exceeding 10 billion yuan. It can be said that SIHC is not just an ordinary state-owned enterprise, but a large financial holding platform built by Shenzhen with strong fiscal strength. As of the end of 2017, SIHC's total assets were approximately 500 billion yuan, with average annual operating revenue of about 50 billion yuan and average annual total profit of about 20 billion yuan. It has 34 subsidiaries, including a large amount of high-quality properties in Shenzhen such as Shenzhen Bay, Convention and Exhibition Center, and Futian Free Trade Zone. SIHC's financial services industry cluster is characterized by technology and finance, focusing on introducing banking and insurance licenses. Through major measures such as M&A and controlling stakes, and establishing commercial banks, insurance companies, and financial leasing companies, it controls 3-4 licensed financial institutions, forming an output value scale of over 80 billion yuan. Why did the state-owned enterprise choose Eternal Asia? In recent years, the supply chain industry has received increasing attention, with favorable policies. In October 2017, the State Council issued the "Guiding Opinions on Actively Promoting Supply Chain Innovation and Application" (hereinafter referred to as the "Opinions"), proposing to cultivate about 100 globally leading supply chain enterprises by 2020, with green supply chains and global supply chains as future goals and directions. In April 2018, eight ministries including the Ministry of Commerce issued the "Notice on Carrying out Pilot Projects for Supply Chain Innovation and Application," promoting the improvement of key industry supply chain systems, facilitating the transformation and upgrading of traditional physical commodity trading markets, creating online-offline integrated supply chain trading platforms, and promoting the integrated development of markets and industries. The policy direction aligns perfectly with Eternal Asia's consistent business structure and strategic layout. As policy support for supply chain service enterprises becomes clearer, Eternal Asia, as the current leader in the supply chain industry, will undoubtedly be a major beneficiary. According to Wan Lian Wang, Eternal Asia's total revenue in 2017 was 68.515 billion yuan, with net profit of 595 million yuan, a year-on-year increase of 14.74%. Over the past five years, annual revenue growth totaled 225.98%, with stable gross margins and a high level of return on assets. In 2010, Eternal Asia launched the 380 distribution platform to efficiently connect suppliers and consumers. In 2017, the 380 platform's annual revenue exceeded 40 billion yuan. After ten years of exploration, it covers more than 3 million retail stores nationwide, reaching nearly 2 million terminals, accounting for nearly half of the total domestic retail terminals. This largest B2B distribution network in China has achieved five firsts: first in national scale (2017 operating revenue of 40.12 billion yuan), first in national service network (regional distribution platforms established in over 320 cities), first in national terminal coverage (serving nearly 2 million terminal retail stores), first in national product brand count (strategic partnerships with over 2,600 well-known brands across industries), and first in national team size (nearly 30,000 professional service personnel). SIHC's investment was driven by its insight into Eternal Asia's scarcity and strategic position in the industry. SIHC's strategic goal is to build a leading high-end service industry cluster in China, and Eternal Asia's capabilities and experience in the distribution field are a strong driving force to achieve this strategic goal. "From the perspective of introducing state-owned capital as a strategic investor, proactively bringing in a resource-complementary state-owned enterprise as the second-largest shareholder will be beneficial to the company's growth and development," said a relevant person in charge of Eternal Asia. "The two parties will have huge cooperation potential and development space in the supply chain business ecosystem services and supply chain financial services. In the future, we are committed to actively implementing Shenzhen's '13th Five-Year Plan' for modern logistics, building Shenzhen into a global supply chain management center, and cultivating Eternal Asia into a globally leading supply chain service provider." Source: Wan Lian Wang -END-