Sibao Technology intends to buy 100% of Tully Technology for 255 million yuan, sprinting the 10-year target of 10 billion yuan.

On April 20,
Silicone Technology
(300019) announced that in order to meet the company's strategic development and business needs, consolidate and further enhance the company's competitive advantage in the silicone rubber industry, enrich and improve the company's industrial layout, enhance the company's profitability,
Corporation and its wholly-owned subsidiary, Chengdu Sibao New Materials Co., Ltd. ("Silicon Bao New Materials"), intend to acquire 100% of Chengdu Tully Technology Co., Ltd. ("Tully Technology") in cash, with a transaction value of 255 million yuan (pre-tax).
It is learned that Toli Technology has been listed in the new three boards (stock code: 835344), is a professional engaged in silicone, epoxy, ultraviolet curing and other functional polymer materials research and development, production, sales, technical services of national high-tech enterprises, products are divided into silicone rubber, ultraviolet curing materials, epoxy resin materials, widely used in electronics, 5G communications, electricity, home appliances, civil aviation, communications, automotive and other fields. In 2018 and January-October 2019, Toli Technology achieved operating income of RMB138 million and RMB106 million, respectively, and net profit of RMB926.37 million and RMB6.8332 million .
the two sides of the transaction, in the next three years, Toli Technology achieved a net profit of 15 million yuan, 20 million yuan, 25 million yuan, respectively, that is, the cumulative three-year assessment of net profit reached 60 million yuan. In addition, the cumulative net operating cash flow for the three years from 2020 to 2022 is not less than 80% of the cumulative appraisal profit for the three years.
the merger, Wang Youzhi, chairman of the company, said the merger is conducive to broadening the layout of the silicon treasure technology industry, enrich the product line of listed companies, quickly cut into emerging areas, into the supply chain of leading industries.
the same time, at the 2019 annual shareholders' meeting of Silicon Bao Technology held on the 20th, Wang Youzhi said the company's revenue exceeded the 1 billion mark. According to the annual report, in 2019, the operating income of Sibao Technology reached RMB1,018 million, up 16.94% YoY, and net profit reached RMB132 million, up 101.99 percent YoY, breaking the RMB 100 million mark. Wang Said that due to the increased concentration of the upstream market, the market share of Silicon Bao has increased in the past year. For most of last year, Sibao Technology was in full production and in short supply, and the business remained able to grow.
starting in 2019, in the next 10 years, Silicone will be based on the new materials industry, silicone-based industry, its own business to maintain a 20% growth rate, coupled with the acquisition of sales revenue, the company's overall sales revenue will reach 10 billion yuan.
.