CIMC plans to inject the equity interest in airport facilities business into CFE and becomes its majority shareholder

CIMC announced on December 4 that it plans to inject all of its equity interest held in Pteris Global Limited into China Fire Safety Enterprise Group Limited (CFE). After the transaction is finalized, CIMC will increase its equity interest held in CFE from 30% to over 50% and become the majority shareholder of CFE.

According to a responsible officer of CIMC, due to the huge development growth in the world’s airport facilities business, in particular, in China’s market, the transaction will benefit the overall development of the Group’s airport facilities business, create better returns for investors and encourage the company to produce more and better products for customers. Though CIMC is a listed company, yet after its business segments have established independent capital operating platforms, the complete supervision system of the listed company will better standardize the operations of these business segments. More importantly, the transaction will better improve the rapid, steady and healthy development of the businesses involved, and increase the value of shareholders of CIMC and CFE. In the future, CIMC will make more efforts to encourage the high-quality business segments such as the Airport Facilities to go public as early as possible.

Globally, there is a limited number of professional and comprehensive airport facilities producers that have the strength to service an extensive market. In China, there is a serious shortage of producers with high-end equipment production capabilities except CIMC. However, as China is rapidly growing into a powerful manufacturing country, CIMC Airport Facilities has become a member in the world’s first-class producers and service suppliers. In the future, with the increased demands for high-end, intelligent, eco-friendly and highly efficient airport facilities, CIMC Airport Facilities will be able to achieve more business success.  

Besides the airport facilities business, other businesses of Pteris Global Limited are developing satisfactorily. The intelligent mechanical stereo garage will meet the rigid demands of large cities, and the automatic logistics equipment will be on the rise due to the growth in global and China’s express delivery business. Research data shows that on China’s express delivery, e-commerce and airport MHS (material handling system) market, a total sum of 47.1 billion yuan in 2020, with compound annual growth rate of 29.6%. Other data shows that the market share of the world’s top 20 automatic logistics integration companies is worth US$ 16.658 billion (110 billion yuan), and the total global market share is estimated to be about 130 billion yuan. With the increase in labor cost, it is an inevitable tendency to reduce logistics costs by means of automatic logistics. It is estimated that in next 5 years, the automatic logistics system market will remain to grow at a high speed. Since the automatic conveying and sorting equipment market in which CIMC Airport Facilities has been doing pretty well is essential for the development of automatic logistics, it will have brighter prospects.