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168 Million! Once The "First Suit Of Chinese Suit", Shan Shan Can Easily Dominate This Shaanxi Enterprise!

2020/2/22 11:41:00 0

Shan Shan

In February 4, 2020, once the "clothing first stock" Shanshan shares, the 48.1% of its Shanshan brand operation Limited by Share Ltd (hereinafter referred to as "Shanshan brand") was sold at a price of 168 million yuan to a number of companies and individuals including Shaanxi maye industry and Trade Co., Ltd.


This shows that when losing control power, the brand of Shanshan will no longer appear in any form in its parent company's financial statements.


The announcement shows that Shaanxi Maoye industry and Trade Co., Ltd. was established in December 11, 2009, with a registered capital of 1 million 800 thousand, which covers the production, processing and marketing of garments and accessories, shoes and caps and accessories, the development and sale of computer hardware and software, decorative materials, office supplies, sports products, chemical products (except for precursor and dangerous chemicals), mechanical and electrical products, general merchandise and hardware exchange. Sales of electricity, its actual controller Luo Yefei as director and general manager of Shan Shan Brand Company.


Shanshan brand operation Limited by Share Ltd was founded in August 23, 2011, with a registered capital of 133 million yuan. Its business scope covers brand operation management, brand planning, clothing, knitwear, leather products, labor protection products manufacturing, processing, wholesale and retail.


Reporters learned from the earnings report that in 2018, the brand income of Shanshan brand reached 790 million yuan, and the net profit attributable to shareholders of the parent company was 48 million 836 thousand and 700 yuan. In the first three quarters of 2019, the brand income of Shanshan brand reached 562 million yuan, and the net profit attributable to shareholders of the parent company was 4 million 176 thousand and 200 yuan.


Shanshan shares agreed that, with the approval of the shareholders' meeting, three consecutive years of operation capital credit guarantee for the Shanshan Brand Company (the "credit guarantee"), the guarantee amount was no more than three hundred million yuan in the first year, not more than two hundred million yuan in second years, and not more than one hundred million yuan in third years. But Shanshan Brand Company must pay the guarantee fee to the company in accordance with the company's credit guarantee Ordinance, and the buyer shall provide the company with an anti guarantee on the credit guarantee provided by all the shares held by Shanshan Brand Company.


In addition, the trademark licensing contract signed by Shanshan Group in 2016 with Brand Company of Shanshan has continued to be effective after this equity transfer.


Shanshan shares pointed out that the transaction is in line with the company's focus on the development strategy of lithium battery material core business. In recent years, the company has clearly focused on the new energy of lithium batteries, taking the lithium battery material industry as the core, and further developing, strengthening and refining lithium battery materials business development strategy. This company sells shares of Shanshan Brand Company, which are relatively independent and whose performance contribution is relatively low, is the further implementation of the company's development strategy, which helps the company focus more on the core business development and operation, optimize the resource allocation and optimize the business structure, and enhance the core competitiveness of the company. The interests of the company and all shareholders.


After the transfer of shares, Shanshan Group's stake in Brand Company will be reduced to 19.37%. The company will no longer control the Shanshan company.


Wai. The company will appoint a director to participate in its daily management according to the shareholders' rights, and share the future operation results of the Shanshan Brand Company through the long-term equity investment and profit distribution calculated by the equity method.


According to statistics, Zheng Yonggang founded in 1989. With its high quality, fashionable and exquisite production, Chinese fir grew into the first brand of Chinese suit in a short time. A TV advertisement slogan of "Shan Shan suit not too smart" made it a big shot in China.


In 1991, under the leadership of Zheng Yonggang, Shan Shan began to explore enterprise restructuring, first from state to collective, and then to joint-stock system. In 1996, Shanshan became the first listed company in China's garment industry.


But in the most prosperous and prosperous times, Zheng Yonggang began to transform. Zheng Yonggang said: "it is difficult to make clothes well done by UNIQLO and Zara, because clothing is well done, because whether it is technology, technology or design, we are following fashion instead of leading fashion."


In Zheng Yonggang's view, since the passive situation in the field of clothing can not be changed, it is necessary to change the strategic decision of the enterprise. In 1999, Zheng Yonggang moved his fir headquarters to Shanghai and began to look for new opportunities for transformation. In May 1999, Shanshan and Anshan Thermal Energy Research Institute signed a cooperation agreement to jointly invest in Shanghai Shanshan science and Technology Co., Ltd. in 2001, the 863 national investment project "mesophase carbon microsphere" was formally put into operation, ending the monopoly of Japanese enterprises on lithium ion battery anode materials.


Cheng Weixiong, an analyst with textile and garment industry, said that the common feature of the local brand enterprises is "black under the lights". They are always "cross", "learn", "imitate", "innovate" and "transform". What we need to see is that "transformation" and "innovation" of models can not "imitate" and "learn", but also can not arbitrarily "cross the boundary", so that their enterprises are lost at the crossroads of market reconstruction; each enterprise's development mode or business mode at a specific market stage is stepping up the development of the draught, and taking off with the wind is not the "bull" strength of the "pig", but the strong wind of this gust. ;


Insiders said that the growth rate of textile and garment retail slowed down with the slow growth of the local retail industry, and the volume of traffic under the line shifted to shopping centers and large business circles. Online traffic had a tendency to concentrate on the head brand, and jointly promoted the brand competition in the industry to intensify, affecting brand sales and profitability.


Wang Feng, a researcher at Huajin securities, pointed out that during the period of slowing economic growth, consumers have cut down on textile and clothing consumption, leaving the budget to the trend of daily necessities and consumption upgrading. Japan's economic growth slowed down from 1978 to 1986. The annual growth rate of household Mens consumption excluding other shirts was about -1.2%. The annual compound growth rate of household clothing consumption was about -4.6%. In addition, textile and garment exports have declined in the process of Sino US trade relations and the transfer of capacity to Southeast Asia. Therefore, since 2019, the textile and garment industry continued to boom. In the three quarter, the prosperity index of textile and garment enterprises has been significantly lower than the beginning of 2019.


Under the influence of the consumer environment, Euromonitor expects sales growth in 2019 and 2020 to remain at 3%~4%, slowing down by nearly 8% in 2018. The macroeconomic environment has affected consumer confidence and the growth of clothing consumption has slowed down.


Shan Shan brand predicts that the net profit in the year ended December 31, 2019 will decrease by about 70%-90% compared with the net profit of about 36 million 210 thousand yuan in 2018, or 3 million 620 thousand yuan to 10 million 860 thousand yuan.


The Shanshan brand, the parent company of Shanshan Group, has become the world's largest supplier of lithium battery materials. It has 60 thousand tons of cathode material, 80 thousand tons of finished products and 40 thousand tons of electrolyte. The company focuses on the core businesses such as cathode materials and negative materials. Under the background of the shuffling period of the industry chain, it focuses on the layout of three key variables: "scale + quality customers + cost control".


According to the financial report, in the first three quarters of 2019, Shanshan stock company realized business income of 6 billion 515 million yuan, an increase of 2.08% over the same period last year, and realized a profit of 288 million yuan, down 72.71% from the same period last year, and realized the deduction of non-profit 214 million yuan, down 44.51% compared with the same period last year. 8 million 750 thousand yuan, a year-on-year decrease of 88.32%, a decrease of 62.55% compared to the same period, and a deduction of 52 million 190 thousand yuan for non-profit deduction, a decrease of 36.88% compared with the same period last year, and a decrease of 57.83% compared with the same period.


Shanshan shares explained that the main reason for the decline in the company's performance was the decline in the performance of lithium-ion battery cathode materials compared with the same period last year. In addition, due to the implementation of the new financial instruments guidelines this year, the proceeds from the sell-off of bank shares in Ningbo were no longer recognized as investment income. In the same period last year, Ningbo, Levi, could introduce strategic investors to equity method accounting to confirm the investment income and the land disposal of port projects. Assets disposal income is not caused by such items.


It is understood that Shanshan, a subsidiary of Shanshan Group, is responsible for the operation of cathode materials business. With its first advantage in the field of lithium cobalt oxide, Shanshan ranked first in the list of China's lithium power cathode materials industry competitiveness brand for the 5 consecutive year. According to official website, Shanshan energy has three major cathode materials production bases in Changsha, Ningxiang and Ningxia. The total annual production capacity is 60 thousand tons. The total scale is ranked first in the mainstream material enterprises in China. The company also launched an annual output of 100 thousand tons of cathode materials project planning in Changsha high tech Zone, of which the annual output of 5000 tons of Gao Niesan yuan material production line is currently in the construction stage. It is estimated that the 2020 annual CIC trial production is expected to further enhance the company's position in the field of three yuan cathode materials.
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