Queensland acquisition of New Southwest Trade Co., Ltd. was adopted

Quentin (000560) recently held a shareholder meeting to consider the adoption of the company to the Southwest Commercial Building Co., Ltd. issued shares to purchase assets related to the bill. The company intends to issue shares to buy the latter owned Kunming New Southwest Trade Co., Ltd. 100% shares.　　Southwest Commercial building for the major shareholder Huaxia Western holding subsidiary, if the transaction is completed, Huaxia Western holdings of listed companies will rise from 31.1% to 43.7% of the share. He Dao, the chairman of Quentin, said the restructuring was based on three main reasons. First, the big shareholder Huaxia Western Development company after the reorganization of Kun Hundred, once to the Kunming government and the majority of shareholders have promised that major shareholders will improve and improve the management, the cumulative loss of more than 240 million, To 7 banks in debt 344 million of the new Southwest operation to profit after injection into the listed companies, so that the Kunming hundred dozen to create the local commercial flagship of Yunnan. Second, the transaction is to eliminate related transactions and avoid the competition, the listed companies bigger and stronger. Third, the transaction is in line with the company's strategic development needs. After years of exploration, the company management recognized that business is always the company's core competitiveness, and ultimately the commercial and commercial properties as the company's future development focus.　　The organic combination of business and hotel services can increase the short-term profit and net cash flow, but also can excavate the long-term potential value added ability of the property, so that the company's value will be fully promoted. Company introduction, the new Southwest 2008 before the new Southwest square floor area is less, since the new Southwest in 2009 to recover the new Southwest square-2 to 7 floors of all the floor, that year to achieve profitability, 2010 to achieve operating profit of 23.34 million yuan. Deduction of the impact of fair value changes, 2009, 2010, respectively, the realization of operating profit of 1.24 million yuan, 11.5478 million yuan, the asset profitability has been greatly improved. New Southwest income model for the collection of rent and "Rent plus" form, the first five major clients contribute to the main business income does not exceed its total of 50%, day-to-day operating income is guaranteed. And Kun Hundred management in late 2004 through the "Commissioned management contract" in charge of the new Southwest Square day-to-day operation and management, the later integration risk is small. Meanwhile, Kun hundred existing commercial business area of about 75,000 square meters, access to the new Southwest square of about 72,000 square meters of business area, coupled with the construction of Kunming Chenggong Xincheng Commercial Center, the final company's commercial area will reach 250,000 square meters, is expected to build a reasonable commercial layout, market competitiveness will be enhanced.