Tongcheng Holdings plans to change its name to Firecoin Technology, and its share price has risen by more than 18%.

Yesterday (September 10), Tongcheng Holdings (01611.HK) announced that the board of directors proposed to change the company's English name "Pantronics Holdings Limited" to "Huobi Technology Holdings Limited" and the Chinese name "Tongcheng Holdings Limited" The company changed to "Firecoin Technology Holdings Limited" and appointed Li Lin as Executive Director, Chairman of the Board and CEO, and concurrently with Li Shubing and Lan Jianzhong as executive directors, Duan Xiongfei, Ye Weiming and Wei Yuran as independent Non-Executive Director.

Affected by the announcement, HT continued to rise in the evening, once approaching 4.2 USDT, and now slightly down to 4.0946 USDT, the highest since August 29. Tongcheng Holdings (01611) shares fell slightly by 3.43% last night, but rose to 3.670 Hong Kong dollars after the opening today, the highest increase of 18.39%.

According to public information, Tongcheng Holdings is registered in the British Virgin Islands. The original controller is Xu Naicheng. Its main business is screw coil, battery charger solution and power supply, LED lighting and other services. According to the mid-year report from 2017 to 2018, the company's business performance was not good, the sales gross profit margin fell from 22% to 14%, and the net profit margin decreased from 1.7% to 0.6%. The net cash flow from operating activities accounted for the proportion of operating income. It fell 8.22% and the stock price has been on the verge of “penny stocks”.

It is precisely because of this, the industry insiders said that it meets the conditions of a "shell company", reviewing the trajectory of the acquisition of Tongcheng Holdings by the fire currency, all accompanied by the rise in stock prices.

On August 28, 2018, the Hong Kong Stock Exchange disclosed that the major shareholders of the Hong Kong-based Main Board listed company, Tongcheng Holdings, transferred 73.73% and 6.8% of the shares to Li Lin and Chairman of the fission capital chairman Teng Rongsong respectively. Li Linyi The average price of HK$2.27/share cost HK$600 million became the actual controller of Tongcheng Holdings. The news was regarded as a key step in the “backdoor listing” of the fire currency.

Two days later, Tongcheng Holdings climbed to 6.8 yuan, which surged more than 130% in intraday trading and closed at HK$6.8/share.

On October 8, 2018, Firecoin and Tongcheng Holdings issued a joint announcement that Trinity Gate, a global partner and partner of the company, completed the acquisition of a total of 216 million shares of the sale of Tongcheng (accounting for approximately 71.67% of the issued share capital of the company). The share option agreement was settled on 5 October 2018 and the outstanding consideration for the share options was paid in full by Trinity Gate to the seller of the share options.

The completion of the share delivery does not mean the completion of the acquisition of the fire currency. It can only reach an agreement on behalf of the buyer and the seller. Finally, it depends on the attitude and notice of the Hong Kong Securities Regulatory Commission and the Stock Exchange. Some senior people have said that they are not optimistic about the success of the fire coin. It believes that Hong Kong regulators will not be unclear about the fact that the main business of the fire currency is highly correlated with the business model and the digital currency. The regulator is likely to delay the acquisition process by issuing multiple enquiries.

On October 11, 2018, Firecoin Global and Tongcheng Holdings re-issued a joint announcement saying that the acquisition of the last two remaining shares was completed. As of October 10, it indicated that Tongcheng Holdings had completed the acquisition. The next day, Lin Wenhe and other former 6 company directors resigned and appointed executive director Li Shu-Boo as a member of the Nomination Committee, an authorized representative, and an agent in Hong Kong to receive legal proceedings.

On July 19 this year, Huobi Investment Limited, a wholly-owned subsidiary of the company, purchased the target company Win Techno Inc as a purchaser of HK$6 million. Win Techno Inc's main business includes providing data center related services, including but not limited to data storage and backup, data center operations and maintenance. After the announcement of the stock price rose more than 10% on the day of the announcement, it surged 25.5% the next day.

Firecoin is not the first company in the currency circle to acquire a listed company in Hong Kong. From April to June last year, Yao Yongjie, the founding partner of Zhejiang Xiong'an Fund and the chairman of Hangzhou Hao Investment Management Co., Ltd., spent nearly 550 million Hong Kong dollars and bought 60.5% of SHIS LTD (01647.HK) twice.

In January of this year, OK Group acquired 3,182,790,001 shares, or 60.49% of the issued voting shares, after the fire currency, and injected the Hong Kong listed company Advance Holding Group (01499.HK). The agreed price is the average price per share. HK$0.1520, involving approximately HK$484 million.

However, the industry still has reservations about the operation of backdoor listing.

However, at present, the male case technology has been transformed. According to the statistics of Caijing.com, in the information released by Xiong'an Technology in 2019, there were as many as 14 announcements concerning industrial cannabis, accounting for 46.66% of the total number of announcements. In addition, according to the senior observer of the blockchain cited by the Finance Association, according to the trading rules of the Hong Kong Stock Exchange, Xu Xingru wants to put the OK Group's blockchain business into the shell company in the short term, and also needs to pass multiple policy checkpoints and ports. The test of the discretion of the exchange.

Original article, author: aloe; reprint law violations reserved.

Source: Planet Daily