News blog

China Wonder / Qihang Equipment Company

  • BY: Andrew Hore |
  • POSTED: 16/06/2011 |

Cash shell China Wonder Ltd is buying Win Yu International Investments in a cash and shares deal valuing it at RMB130m (12.3m).

The cash element is 5m - China Wonder has 5.4m in cash after selling its previous businesses. The shares are being issued at 19p each. A placing will raise 325,000 at 19p each to finance acquisition costs.

Win Yu is based in Zhenjiang, Jiangsu Province, China and it makes lathe and milling machine tools. Most of the machines are manual but an increasing proportion of sales come from digitally controlled machines. The majority of the machines are sold to general manufacturing businesses. The manufacturing facility was relocated in 2009.

Win Yu made a profit of RMB21.8m (2.07m) on revenues of RMB210m (19.9m) in 2010. The profit would have been RMB27.7m (2.63m) without bad debt write-offs. There was 3.1m in cash in the balance sheet.

China Wonder intends to expand Win Yus product offering and increase its market share. Acquisitions will be considered.

Trading has improved in the first quarter of 2011.

Northland has been appointed nominated adviser and joint broker, with Rivington Street. Northland replaces WH Ireland.

China Wonder is changing its name to Qihang Equipment Company. 

At 20p a share, China Wonder is valued at 3.6m.

Download the June 2011 edition of AIM Journal at http://www.hubinvest.com/AIMPDFJune2011_21.pdf

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