A few days ago, Precise released a report on major asset replacement, issuance of shares to purchase assets and raising supporting funds and related transactions (draft) (Draft for the last meeting), which plans to take all the assets and liabilities of the listed company except for the 100% equity of COMAN Company as assets and liabilities. The assets are exchanged with the equivalent part of the 100% equity of Range Technology held by Beijing-Tianjin-Hebei Range (hereinafter referred to as the "placed assets"); then the listed company issues shares to acquire the equity between the placed assets and the placed assets. The difference, the transaction consideration for the issuance of shares is 13.666 billion yuan. After the successful reorganization, Range Technology will achieve a backdoor listing.
According to data, Range Technology’s main business is data center construction and operation, and it has high-level (T4) data center planning, design, construction and operation capabilities. Its cabinet scale, power-on rate and gross profit margin are at the forefront of the industry. According to the "2021-2022 China IDC Industry Development Research Report" released by KZ Consulting, Range Technology ranks 5th in the business scale of China's third-party IDC market service providers in 2021.
Through the backdoor listing, Range Technology can use the multi-channel financing function of the capital market to expand the company's scale and gain more market shares; the introduction of Range Technology by Precise can improve the fundamentals of the listed company and further enhance its sustainable operation capability and development potential.
In this reorganization, Precise chose to introduce Range Technology, which is the epitome of the data center's active role in the capital market in recent years, reflecting the good development prospects of the data center industry. Taking the first quarter of 2022 as an example, Blackstone Group invested 1.58 billion yuan in 21Vianet, Sequoia Capital and STT GDC invested 3.92 billion yuan in GDS, and Mubadala invested 3.16 billion yuan in PDG Data.
China's IDC industry currently attracts a large number of domestic and foreign funds, including international fund companies such as Bain Capital, Gaw Capital, Sequoia Capital, and domestic capital with layout capabilities such as CITIC and Sino-Ocean. Especially since 2020, the national digital economy In the context of transformation and the continuous advancement of the new infrastructure construction process, capital is optimistic about the development space and prospects of China's IDC field, and investment activities are becoming more frequent.
The scale of the IDC market is also expanding rapidly. In 2021, the overall scale of China's overall IDC business market will exceed 300 billion yuan, reaching 301.27 billion yuan, a year-on-year increase of 34.6%, and will maintain a growth rate of more than 20% in the future.
Analysts from KZ Consulting pointed out that, as a digital infrastructure, a data center has both the value of fixed assets consisting of land, buildings, and mechanical and electrical equipment, as well as the operating value of generating cash flow and profits through specialized operations after the completion of construction. The investment value is relatively high. The data center market is also extremely broad. With the continuous penetration of digital technology into all fields of the economy and society, the demand for data storage and processing in the whole society will continue to increase rapidly. It is a high-quality investment object in the capital market.
Under these conditions, the scale of the data center industry continues to expand, and under the promotion of policies, regulations and measures such as the "Three-Year Action Plan for the Development of New Data Centers (2021-2023)" and the "East Data and West Computing" project, the data center will continue to develop in the direction of high technology, high computing power, high energy efficiency and high security.
At the same time, KZ Consulting analysts also reminded that due to factors such as the strengthening of the state's supervision of data center energy consumption, the rapid increase in market supply, the increase in market participants, and the continuous increase in energy conservation and carbon reduction requirements, the data center market competition is intensifying, construction and operation. Costs will increase, and data centers in some regions will become more difficult to power on in the short term. There are certain market risks. It is not advisable to blindly follow the trend. If you want to enter the data center, you still need to be aware of policy requirements, supply and demand, and geographic location. etc. to make a comprehensive judgment.
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