Yesterday (September 28th), BTN announced that its wholly-owned subsidiary, Hainan BTN Investment Co., Ltd. (referred to as Hainan BTN), plans to acquire a 48.55% equity stake in Yuejiang (Guangzhou) Investment Co., Ltd. (referred to as Yuejiang Investment) held by its subsidiaries, Wuxi Baojiehui Zhuan Yue Venture Capital Enterprise and Qingdao Baojiehui Zhuan Ao Venture Capital Enterprise, etc. Additionally, BTN will use its own funds of 50 million yuan ($6.85 million) to subscribe for an additional registered capital of 124,300 yuan ($17,024) in the target company.
The pricing of this transaction is based on a valuation of 1 billion yuan ($137 million) for the target company prior to the investment, which was determined through negotiations between the parties. After the completion of this transaction, Betteney will hold a 51% equity stake in the target company through Hainan BTN, and the target company will be included in the consolidated financial statements of Betteney.
BTN stated that the acquisition of the controlling stake in Yuejiang Investment aligns with the company’s development strategy and meets its operational and development needs.
Public information shows that Yuejiang Investment was established in 2019 and is a brand management company engaged in the sales and operation of related cosmetic brand products. The core team possesses extensive industry experience and domestic and international multi-channel operational capabilities in this field.
BTN mentioned that by leveraging the respective advantageous industrial resources of Betteney and Yuejiang Investment and creating synergies, it will help further enhance Betteney’s overall competitiveness, strengthen its international layout, improve its operational performance, and accelerate the achievement of strategic goals.
Furthermore, it also stated that Yuejiang Investment is currently in the stage of business input and rapid growth, and in its future operations, it may face uncertainties due to factors such as the economic environment, industry policies, changes in market demand, and operational management. There is still some uncertainty regarding whether its future business development will meet expectations.