Mido Energy's layout of lithium batteries and finance

On August 13, Mido Energy announced that its subsidiary, US Capital Financial Holdings, intends to acquire Hangzhou Xinhehui Internet Financial Services Co., Ltd. (hereinafter referred to as Xinhehui) with a capital increase of 150 million Yuan plus no more than 700 million Yuan acquired 34% of the shares. At the same time, it plans to set up Sun Company Mido Power to invest 398.6 million Yuan to acquire a 49.6% stake in Delangneng Power.

According to the disclosure, Mido Energy's subsidiary Mido Financial Holdings and Zhejiang Zhiji Holdings Co., Ltd. and Xinhehui signed the "Agreement on Equity Acquisition and Capital Increase Intention", and it is planned to obtain 6% of Xinhehui with a cash increase of no more than 150 million Yuan. Equity, and intends to acquire 28% of Xinhehui's equity held by Zhizhi Holdings for not more than 700 million Yuan. After the transaction is completed, Mido Financial Holdings holds a 34% stake in Xinhehui.

The reporter noted that Xinhehui was established in 2014 and is a financial platform for personal investment. According to the operational data of Xinhehui official website in July, as of July 31, there were 5,638,800 people joining Xinhehui, and the accumulated turnover reached 49.692 billion Yuan.

However, it is worth mentioning that after the violent development of the Internet financial platform in 2014 and 2015, the supervision of the entire Internet financial industry is becoming increasingly strict this year. On August 1, the China Internet Finance Association (hereinafter referred to as the Mutual Gold Association) issued the "Internet Financial Information Disclosure Standard - P2P Online Loan (Consultation Draft)" and "Internet Financial Information Disclosure Self-discipline Management Regulations (Draft for Comment)" More emphasis on the compliance and security of the Internet financial platform will exacerbate the reshuffle of the entire industry.

In this regard, Canxia Zhang, a senior researcher at Yingcan Consulting, told reporters on August 14 that “the space for survival of the mutual gold platform is still very good, because the financial needs of the public are still very strong, and whether it is doing Internet finance or not, p2p network Loan is also good, security and compliance have increased, this market demand is very large, so what survives is to face a big market cake to divide."

As for investment in the energy sector, it is understood that Mido Energy's subsidiary Zhejiang Mido Monet Technology Co., Ltd. and Hangzhou Shuyi Investment Management Partnership Co., Ltd. intend to jointly invest 100 million Yuan to establish Mido power battery Partnership. Among them, Mido invested 51 million Yuan, 51% of which was the executive partner of Midu Power; Hangzhou Shuyu invested 49 million Yuan to hold 49%. Mido Power intends to acquire a 49.6% stake in Delangneng Power, which is held by Shanghai Shiyi as a total of no more than 396.8 million Yuan in cash. After completion, Mido Power became the single largest shareholder of Delangneng Power.

In response to the above two investments, Yongtang Weng, executive vice president of Mido Energy, told reporters that after the company released the strategy of “energy-led + financial innovation” in early 2016, the management has been looking for a suitable opportunity, and this acquisition further strengthens the company’s deep-rooted domestic The strategic intent and determination of the new energy and financial services platform. Subsequent companies will continue to conduct mergers and acquisitions in the upstream and downstream industrial chain and new financial fields of lithium-ion batteries. Strengthen industrial synergy and complement each other to lay a solid foundation for the company's long-term strategic goals.

However, the reporter noted that the total profit of Mido Energy in 2014 was 270 million Yuan, and in 2015, the total profit of Mido Energy was only 89.19 million Yuan. In one year, profits have been reduced by 180 million Yuan. Among them, the operating income of the petroleum industry and real estate industry has decreased significantly.

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