Case Background
Pursuant to the “Opinions on Initiating the Economic Disposal of the Debt of Shenzhou City XX Technology Co., Ltd.” issued by the State-owned Assets Supervision and Administration Commission of the XX Municipal People’s Government, this valuation is conducted to determine the conversion ratio and equity consideration for both parties involved in the debt-to-equity swap.
Basic Case Details
Subject of Valuation: Value of all shareholders’ equity in Shenzhen XX Technology Co., Ltd.
Valuation Date: July 31, 2025
Valuation Methods: This valuation employs the asset-based approach and the market approach
Project Scale: Total assets: 1,201,526,100 yuan; Total liabilities: 1,435,959,700 yuan; Net assets: -234,433,600 yuan. Major assets include inventory with a book value of 513,065,000 yuan; three long-term equity investment entities with a total investment cost of 155.6 million yuan; equipment-related fixed assets with a book value of 63.8892 million yuan; and off-balance-sheet intangible assets, including 10 trademarks, 92 patent rights, 51 software copyrights, and 1 domain name.
Scope of Services: 1. To provide a value reference for Shenzhen XX Technology Co., Ltd.’s proposed debt-to-equity swap;
2. To provide professional services to facilitate the smooth progress of the transaction;
3. By safeguarding the rights and interests of both creditors and the company’s existing shareholders, we provided a professional valuation benchmark to facilitate the smooth progress of the transaction. This ensured that the economic aspects of this valuation service fully complied with state-owned asset regulatory requirements and corporate governance standards, thereby providing compliance endorsement for the authority and practical applicability of the valuation conclusions.
Case Insights
1. In the practical implementation of corporate debt-to-equity swaps, the fair pricing of equity value is a core challenge. Through a dual-verification approach combining the “asset-based method” and the “market-based method,” this case study not only ensured the authenticity of asset values but also took market fairness into account, effectively balancing the interests of multiple parties—including creditors, debtors, and shareholders—and providing a professional solution for the pricing phase of debt-to-equity swap projects;
2. This valuation service was provided for a debt-to-equity swap project involving state-owned asset approval procedures, covering the entire process—from approval procedures and valuation methods to value disclosure—
