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Three Auction Companies Plan to Merge and List in HK
Insiders of the auction trade disclosed that three large Chinese auction companies would merge themselves into a new firm and plan to list in Hong Kong in the year. If the plan can be successfully realized, then it will become the first listed auction company in China.
According to Shanghai Commerce report, the three auction companies are the China Auction Net Co. of Beijing, the Guangdong Foshan Jinggui Auction Co., Ltd., and Guangzhou Suihe Auction Co. which are in the front ranks in terms of their online sales volume. In addition, China's largest auction website, www.paide.com (www.a123.com) will be merged into the new company as its online auction platform. It's estimated that the turnover of the three companies last year totaled 1 billion yuan with over 60 million yuan of net profits. The figure this year is expected to reach 1.5 billion yuan, and net profits 0.1 billion yuan.
However, authoritative sources of Shanghai pointed out that due to their special way of operation, it's hard for auction companies to have the support of sustained, stable and long-term auctioning business, therefore, they face great difficulties in applying for listing.
By PD Online staff member Deng Gang
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