Jiangxi's long-haul expansion worry about mergers and acquisitions assets real profit or more water?

At the beginning of this year, Jiangxi Long Yun announced the acquisition of 54.91 million Yuan Pingxiang long Yun Company's operating assets.　　So, as the local leading enterprises in Jiangxi Province, Jiangxi Long-Yun's epitaxial merger strategy is really conducive to the development of the company?　　Agency rating "cautiously recommended" January 22, 2010, Jiangxi Long Yun to the price of 54.91 million yuan by the Jiangxi Province Pingxiang long-distance bus Transportation Co., Ltd. (referred to Pingxiang Long Yun Company) of the operating assets, another will be pingxiang long shipping company restructuring and government assets delivery should be paid 3.98 million Yuan ledger, by the Jiangxi Long transport repayment. According to China Ming International Assets Appraisal (Beijing) Co., Ltd. November 23, 2009 issued by the Chinese-Ming Pingxiang long-distance bus Transportation Co., Ltd of Jiangxi Province to transfer part of the asset appraisal report, Pingxiang Long run let the asset evaluation value is 65,　　244,053.56 Yuan, the assessment value of the debt is 10,337,399 98 yuan, the net assets value is 54,906,653.58 Yuan.　　In the announcement of the day, the company briefly introduced the performance of Pingxiang Long Yun Company, 2008 main business income of 40.1377 million yuan, net profit of 3.6713 million yuan.　　Jiangxi Long Yun in the announcement that, Pingxiang Long Yun Company assets reorganization, through the integration of the company's road passenger service, can improve its management efficiency, make it become the company's new profit growth point. However, CICC said: "The positive significance of limited, the company's regional expansion is still not out of Jiangxi Province, and the company 2003-2004, the acquisition of Pingxiang Long Yun, the regional expansion of new ideas Limited." From the disclosure of data, the 08 Pingxiang long-term income for Jiangxi Long Yun 4.5%, the acquisition of business increase is also limited. The company's already high asset-liability ratios are not enough to support larger-scale external acquisitions, and corporate regional expansion strategies will be difficult to sustain. According to the data, from 2007 to 2009, Jiangxi long-haul assets and liabilities ratio is 57.98%,62.39%,57.65%. As of the first quarter of 2010, the company's asset-liability ratio has reached 59.86%.　　According to the industry's latest rating tracking, the agency's 2010-year long shipping rating is also cautiously recommended. The cost of the acquisition of a small sum of $ more than 50 million is not a big number for Jiangxi's long haul. As early as December 21, 2007, Jiangxi Long Yun announced that the price of 150 million yuan to let Fuzhou Motor transport company debt-operated overall assets.　　The company said at that time that this is conducive to further expand the company's main business market share, improve the company's core competitiveness, enhance intensive, synergistic operation capacity. It is understood that Fuzhou Motor Transport Corporation registered capital of 56 million yuan, registered address for the Fuzhou ring Road No. 306, the legal representative: Roden.　　The company's main business for passenger and freight transport, run car testing, car repair, fuel supply, accessories sales, vehicle sales. According to Fuzhou Sasac, the state-ownedEnterprise Letter [2007]04 "to Fuzhou Motor Transport Corporation assets appraisal Project approval", confirms Fuzhou Motor Transportation Corporation total Assets 258,　　721,225.43 Yuan, liabilities 95,476,994.12 Yuan, net assets 163,244,231, 31 yuan, of which the overall operating assets of 20,505 Yuan, of which the liabilities of 10,000 yuan, operating net assets of 95.477 million yuan. However, the most concern for investors is the Fuzhou Motor Transport Company's follow-up operations.　　According to the other terms agreed by the two parties, Fuzhou Motor Transportation Corporation finally "hung up" to Jiangxi Long Yun Holding 90% of the subsidiary of Jiangxi Fu Governor Yun Limited.　　And according to Jiangxi Long Yun 2009 Annual report, as of December 31, 2009, Jiangxi Fu Governor Transportation Co., Ltd. total assets of 266.3883 million yuan, net assets of 66.569 million yuan, 2009 total net profit of 8.313 million yuan. In Jiangxi Long Yun Annual report other receivables in the column, Jiangxi Fu Governor Shipping Co., Ltd. Book amount of up to 106 million yuan, and according to the policy of Jiangxi Long Yun, the profit subsidiary of the receivables do not mention bad debt preparation.　　In other words, if you consider the financial cost of a more than billion associated receivables given by Jiangxi Long Yun, Jiangxi Fu Governor Co., Ltd. the net profit of the water can be imagined. A well-known broker in Shanghai gave the securities daily to reporters: "For the stable performance of the transport industry, the assessment of the operating net worth of 50% of the purchase price is indeed a little higher." Another transport analyst said: "If the acquired assets continue to operate poorly, it is very likely to thin the company's future net profit." "In addition to the 150 million yuan acquisition of the Fuzhou Motor Transport Corporation, the income is not high, Jiangxi Long Yun's other acquisitions of assets are poor performance, either loss, or meager profit."　　In 18 major holding and equity companies, there are three losses, such as Nanchang tourism 09 years loss of 269,200 Yuan, Shanghai Xun da Public Rail Transport Co., Ltd. loss of 676800 Yuan, Jiangxi Long Yun Datong Logistics Co., Ltd. loss of 7,600 Yuan. In addition, it is pointed out that although the company has always been the extension of expansion as a major strategy, and in 2004 to 2007, the implementation of a number of acquisitions, but from 2008 to date, the company, in addition to through the Huangshan Long Yun and Jian two subsidiaries completed the Qimen County, Yongxin County long transport business of small-scale integration　　Several of the reserve projects that the market is looking forward to have failed to advance smoothly. Extension expansion cannot make up for endogenous growth the actual control of Jiangxi Long Yun is the Traffic and Transportation Bureau of Nanchang City, Jiangxi Province. In simple terms, the company's main business includes: provincial-run passenger transport, ordinary freight, cargo handling, vehicle maintenance, automotive and motorcycle testing.　　According to the breakdown of the company's annual report, the company has formed a main road passenger transport, logistics, tourism, taxis, as well as property management as a supplement to the business model. In Jiangxi, Jiangxi Long Yun through the continuous expansion in recent years, has firmly occupied the leading position.　　Its tentacles have also included Jiangxi Nanchang, Jingdezhen, Xinyu, Wuyuan, Fuzhou, and Anhui Maanshan, Huangshan and Shanghai area.　　Jiangxi Long Yun said it will adhere to the passenger transport business as the core, continue to consolidate the leading position in Jiangxi Province, relying on capital operations to continuously expand the size of enterprises. However, with the 6 speed increase of railways, the acceleration of high-speed railway construction, as well as the frequent launch and operation of train emus and intercity trains, the road passenger transport enterprises face the challenge of increasing market competition.　　At the same time, road transportation enterprises are facing the challenge of rising fuel prices and high costs over a long period of time. Although the scale of the long haul in Jiangxi Province is expanding annually, but a long-term concern for the company's transport industry analysts in an interview with the Securities Daily, said: "The company's simple endogenous growth is very limited, a maximum of about 10% per year, because it is so many passengers, and also by the peer and high-speed rail competition." Through the extension of the acquisition of expansion can only be said to be a helpless, because the light by selling tickets, is a lack of core competitiveness and advantages. But expansion does not make up for the shortfall in endogenous growth. The analyst, who declined to be named, also said, "The adjustment of the Jiangxi long-haul business model is the main impetus to further enhance the company's profitability." In the future, the further improvement of company's profitability will mainly come from the adjustment of the company's business model, that is, the change of the public and contracted operation scale of the bus-the difference of performance between the two modes.　　"However, Jiangxi and Anhui Province have rich tourism resources, the company tries to explore the combination of line passenger transport and tourism development ideas, but this model is influenced by the macroeconomic environment and seasonal factors, and the company's profitability with the fluctuation of oil prices is also very obvious." Due to the frequent acquisitions in recent years, the management expenses of Jiangxi Long Yun show a fast rising trend. According to the data, Jiangxi Long Yun management costs from 2006 to 2009, in order: 61.39 million yuan, 79.18 million yuan, 94.16 million yuan, 111.46 million yuan.　　Over the past 4 years, the company's management costs have been nearly one-fold. "Indeed, because those mergers and acquisitions of companies have to enter the company's consolidated statement, management costs will certainly rise." "The analyst said:" Now look, the company basically no bright spot, the acquisition of enterprises in the annual net profit is only millions of yuan. "Expansion is indeed a way to maintain the development of the company, but the acquisition of assets once poorly managed, it will bring negative impact on the company, and in the post-crisis era, the economic situation is not stable in the case of a hasty acquisition will increase the risk of business operations." The analyst said.