On September 28, GRGTEST (002967. SZ) held an asset restructuring signing ceremony with ZHONGANGUANGYUAN Testing and Evaluation Technology Service Co., Ltd. (hereinafter referred to as "ZHONGANGUANGYUAN"), a leading third-party evaluation and testing organization in the field of EHS (Environment, Health and Safety) evaluation and consulting. Huang Yuezhen, the Deputy Party Secretary and the General Manager of Guangzhou Radio Group, the Chairman of GRGTEST; Li Yu, the Deputy General Manager of Guangzhou Radio Group; Huang Dunpeng, the Party Secretary and General Manager of GRGTEST; Jiang Yi, the Chairman of ZHONGANGUANGYUAN and other leaders attended the ceremony.
(Huang Dunpeng and Jiang Yi signed the contract on behalf of GRGTEST and ZHONGANGUANGYUAN respectively)
With this acquisition, GRGTEST and its subsidiary in Tianjin jointly acquired 34.95% of ZHONGANGUANGYUAN's equity, totaling 136 million yuan. Upon completion of the acquisition, ZHONGANGUANGYUAN will become a holding subsidiary of GRGTEST, and the total shareholding ratio of GRGTEST and its subsidiary in Tianjin will increase to 70%. This marks the first step of the "industry + capital" two wheel drive development of GRGTEST.
With the qualification of safety evaluation institution, occupational health technical service agency and other evaluation and consulting qualifications, ZHONGANGUANGYUAN is a first-class enterprise evaluation unit for safety production standardization in the field of industry and trade, and one of the few comprehensive technical service agencies in China that have the capabilities of safety evaluation, environmental impact assessment, occupational health evaluation and related consulting services for construction projects at the same time. At present, ZHONGANGUANGYUAN has set up more than 20 subsidiary companies in China, developing an evaluation and consulting service system and a business marketing system covering the whole country, with leading scale advantages.
Huang Yuezhen said in his speech that this asset reorganization was the first major foreign investment project after the listing of GRGTEST on Shenzhen Stock Exchange, which was of great strategic significance to GRGTEST and ZHONGANGUANGYUAN. EHS evaluation and consulting business is a new business segment that GRGTEST focused on cultivating and investing during the "13th Five-Year Plan" of the company. As early as 2016, the company took a stake in ZHONGANGUANGYUAN and entered the field of EHS evaluation and consulting business.
(Speech by Huang Yuezhen)
Huang Yuezhen pointed out that EHS evaluation and consulting business strong complemented and coordinated with the company's existing business segments such as environmental testing, safety testing, and metrology calibration. This asset reorganization is a strategic stretch of the technology service chain of GRGTEST. Through holding ZHONGANGUANGYUAN, the company will lay out EHS evaluation and consulting business from a high starting point to rapidly form market influence. It is expected to cultivate and establish a new major business segment, forming a new economic growth point to help the company achieve sustained and rapid development during the "14th Five-Year Plan" of the company. ZHONGANGUANGYUAN will also enter a brand-new development space and consolidate a more solid foundation for development.
Jiang Yi said in his speech that ZHONGANGUANGYUAN and GRGTEST shared the same values and business objectives and concepts. The signing of this contract represents the start of complementary advantages, resource sharing and mutual benefit. It is believed that with the strong support of GRGTEST, ZHONGANGUANGYUAN can further deepen the utilization of resources and promote business integration, enhancing the strategic coordinated development and innovation capability to achieve a new leap in strategic development.
(Speech by Jiang Yi)
Safety production, prevention and treatment of occupational diseases, ecological environment and public health are closely related to the safety of people's lives and property and social harmony and stability. ZHONGANGUANGYUAN has grown into one of the third-party EHS evaluation and consulting technical service agencies with high popularity and industry influence in China. This asset reorganization conforms to the concept of green development advocated by the Party and the state, reflecting the mission of GRGTEST to actively fulfill the social responsibility of state-owned enterprises.
Under the background of relatively scattered EHS evaluation and consulting industry at present, the comprehensive strength of ZHONGANGUANGYUAN lists in the forefront. The company's brilliant growth performance in recent years has laid a good foundation for the asset restructuring of both parties. Financial data shows that the compound growth rate of the operating income of ZHONGANGUANGYUAN has reached 57.75% in the past three years. In 2019, ZHONGANGUANGYUAN realized operating income of 193 million yuan, up 55.04% year-on-year, with the potential of a relatively high growth rate in the future.
Since its establishment, GRGTEST has closely followed the national strategic industrial planning and layout. In recent years, it has made a large amount of investment in technological upgrading in the fields of material analysis, environmental monitoring, food testing, etc., continuously expanding business fields, focusing on the building of the "one-stop" comprehensive technical service capability to widely serve the government and enterprises and public institutions. At the same time, GRGTEST has vigorously promoted the layout of concentric and diversified industries, built the system's operation and development capability and core competitiveness to continuously improve the profitability and risk resistance capability of the enterprise.
This asset reorganization marks a solid step in the pattern of general service of measurement and testing, scientific research and consulting for GRGTEST. The company's "one-stop" service capability and its comprehensive market competitiveness has been greatly improved. As a holding subsidiary of GRGTEST, ZHONGANGUANGYUAN will also receive more resources to support it to realize upgrading and construction of the platform, aiming to build the best enterprise in the field of safety and environmental consulting of China.
Subsequently, GRGTEST will coordinate with ZHONGANGUANGYUAN in resource integration, business layout, R&D investment, personnel training, quality control and other aspects, giving full play to the platform advantages of both parties to accelerate the transformation into the restructured comprehensive competitive advantages and enhance the core competitiveness, making steady progress towards the goal of becoming a first-class measurement and testing technology service specialist agency.
