Baidu plans to invest 700 million shares in Palm Reading Technology to become the third largest shareholder

Baidu plans to invest 700 million shares in Palm Reading Technology to become the third largest shareholder
Holding 8.8% and have the right to nominate a senior director. Baidu plans to buy shares of Palm Reading Technology at a price of US $ 700 million.  On the evening of March 17, Zhangyue Technology released the plan for the 2020 non-public offering of A shares., The issue price is 18.1 yuan / share.Zhangyue Technology said that the plan has been reviewed and approved by the board of directors, but it still needs to be approved by the shareholders’ meeting and the CSRC.  The parent company invested by Bairuixiang is Beijing Baidu Wangxun Technology Co., Ltd.Hope to show that Bairuixiang has invested more than 28 foreign-invested enterprises, including Trendy Media, Fun Medical Network, Guohuo Network, Li Video and other companies.It is the executive body of Baidu’s war investment department.  Zhangyue Technology stated in the plan that the fundraising budget for this non-public issuance will not exceed 700 million US dollars. After the fundraising replaces the issuance-related expenses, it will be used for digital copyright resource upgrade construction projects.) Period) is 3.In 25 years, the internal rate of return (after tax) was 56.54%.  The so-called digital copyright resource upgrade construction project actually purchases IP copyright.In the plan, Palm Reading Technology disclosed that the funds raised from the project were mainly used for copyright processing fees and copyright procurement fees, of which procurement fees accounted for as much as 98%.33%.Zhangyue Technology said that the project is conducive to enhancing the company’s profitability, integrating internal and external resources, and making full use of the advantages of the platform to build a win-win ecosystem.  For the specific cooperation content with Baidu, Zhangyue Technology agreed to cooperate with Baidu Group in the digital content authorization. The copyright fee of the authorized works within the authorization period is calculated by net income + guarantee, and the guarantee authorization volume is 12 per period.RMB 10,000 (including tax) per month for a total of 36 months, RMB 300 million (including tax).  In addition, the copyright content of Palm Reading Technology remains fully open to Baidu and its affiliates and gives priority to supporting Baidu and its affiliates ‘copyright content procurement needs, while Baidu is in the traffic, content procurement and development, commercialization, artificial intelligence, big data, Software applications and other aspects of prior support for palm reading technology.  If this increase is scheduled for approval, Baidu will become the third largest shareholder of Palm Reading Technology.Zhang Lingyun, the founder of Palm Reading Technology, currently holds 30 shares.42%, Cheng Xiangjun holds 28% of the shares.90%, co-founder Wang Liang holds 7 shares.35%, including Zhang Lingyun and Cheng Xiang who are acting in concert, have a total shareholding ratio of 59.31% is the actual controller of the company.Zhangyue Technology said that after Baidu’s shareholding, the actual controller’s total shareholding ratio is not less than 54.10%, so it will not cause the company’s actual controller to change.  As a strategic investor in this offering, Baidu nominates another director to Zhangyue Technology.At present, there are four directors and replacement independent directors on the board of Palm Reading Technology. Among them, Cheng Xiang appointed the chairman, Zhang Lingyun and Wang Liang as directors.  At present, Palm Reading Technology has not announced the 2019 performance report. According to its third quarterly report, the company’s operating income was 13 in the first three quarters.900 million, down 2 every year.28%; net profit attributable to shareholders of listed companies.0.8 billion, down by 5 every year.92%.  Sauna, Ye Wang Lu Yifu editor Sun Yong proofreading Liu Jun