Newsletter summary

Nord shares suspended 4BonusvideopokerAcquisition of 90.2% stake in Cloud Fortune Futures with .5.5 billion yuanBonusvideopokerDue to the uncertainty of regulatory approval and shareholder qualification approval, the continuous losses of the underlying company have also become the focus of attention.

Text of news flash

[Nord shares suspend acquisition of 90.2% stake in Cloud Fortune Futures] on May 6, Nord shares announced that the company had decided to suspend the acquisition of 90.2% stake in Cloud Fortune Futures Co., Ltd. This decision is based on the fact that the time for the deal is not yet ripe and that the acquisition still needs to be approved by regulators and shareholders, so there is a lot of uncertainty.

[trading consideration of 455 million yuan, continuous losses of cloud wealth futures] Nord shares plan to acquire 90.2% of the shares of cloud wealth futures held by Xuno assets at a price of 455 million yuan in cash. However, the net profit of Cloud Fortune Futures during the period from 2021 to November 2023 was-11.3637 million yuan,-55.7422 million yuan and-36.7853 million yuan respectively, indicating a sustained loss.

[Nord seeks diversified financial services] Nord said that the acquisition aims to provide the company with more comprehensive financial services, improve risk management capabilities, achieve risk diversification and improve investment returns. At present, the company is mainly engaged in the research and development, production and sales of electrolytic copper foil, and the products are widely used in lithium battery production and other fields.

[the inquiry letter of the Shanghai Stock Exchange aroused market concern] the Shanghai Stock Exchange issued an inquiry letter the day after the announcement of Nord shares, asking the company to explain the cooperation between the business of cloud wealth futures and listed companies, as well as the reasons for the continued losses of cloud wealth futures. Market participants speculated that this may be one of the reasons why Nord shares decided to suspend the acquisition.

In response to inquiries from the Shanghai Stock Exchange, Norde shares said that the company held a 25% stake in Tianfu Futures Co., Ltd. many years ago and hedged through the derivatives market to control the cost of raw materials. The company is optimistic about the development prospect of the futures industry, and hopes to further expand the scope of business and deepen the integration of industry and finance.

[the net profit of cloud wealth futures is continuously negative] the successive losses of cloud wealth futures are mainly due to the lack of physical business background, resulting in insufficient business volume and insufficient capital to carry out large-scale business. In spite of this, Nord shares believe that if the equity acquisition of cloud wealth futures can be completed, it is expected to make use of the business industrial chain and financial advantages of listed companies to improve the business scale and profitability of cloud wealth futures.

[the issue of information disclosure of Nord shares draws regulatory attention] there is a problem of information disclosure in the process of acquisition. After signing the equity transfer agreement and paying a deposit of 80 million yuan on February 6, 2024, the company failed to disclose it in time and did not make an announcement until April 9. Jilin Securities Regulatory Bureau warned against this behavior and asked the company and relevant responsible persons to rectify it.

[investors worry about whether the transaction deposit can be recovered] for investors, if the transaction is eventually not completed, whether the deposit paid can be recovered has become the focus of attention. Nord shares said in the announcement that if the results of the adjustment do not meet expectations, the buyer has the right to decide whether to continue to implement the agreement, and the seller is required to refund the deposit within the specified time.