In the journey of focusing on strengthening the “second growth engine” of cloud business, Dr.Peng Telecom&Media Group Co.Ltd(600804) (600804) has opened the road of asset stripping.
According to the announcement on the evening of February 21, Dr.Peng Telecom&Media Group Co.Ltd(600804) plans to transfer 100% equity of The Pacific Securities Co.Ltd(601099) optical cable data communication Co., Ltd. (PLDC) to Meister United Limited. After the completion of this transaction, Dr.Peng Telecom&Media Group Co.Ltd(600804) no longer holds the equity of PLDC. The basic consideration of the above transaction is US $160 million.
PLDC’s main business is the construction of The Pacific Securities Co.Ltd(601099) submarine optical cable project (“plcn submarine cable project”). The construction of plcn submarine cable project has been completed, but affected by the international situation, it is very unlikely to obtain the U.S. operation license.
Dr.Peng Telecom&Media Group Co.Ltd(600804) said that since the company’s plcn submarine cable project has not been opened yet, based on the judgment of the current market environment and international situation, this transfer of 100% equity of PLDC aims to dispose of the company’s loss making assets, optimize the company’s resource allocation and speed up the return of funds. According to the preliminary calculation of the company, the impact of this transaction on the company’s profit and loss is about 1.718 billion yuan (Unaudited). This part of the company has made provision for impairment of construction in progress in 2021.
From the balance sheet of Dr.Peng Telecom&Media Group Co.Ltd(600804) , it can be seen that the monetary capital of the company was about 340 million yuan in the first three quarters of 2021, down from 2020. After this divestiture, the company’s cash reserves will increase a lot. If the company’s strategic transformation is superimposed, it will increase the power for the company to promote the formation of the second curve.
In recent years, Dr.Peng Telecom&Media Group Co.Ltd(600804) through product and technology iteration, focusing on cloud operation services, cloud business has achieved rapid growth. According to the company’s plan, in the future, under the guidance of the “n + 3 + X” digital intelligence new strategy and cloud computing 2.0 strategy, Dr.Peng Telecom&Media Group Co.Ltd(600804) will continue to deepen cloud business and create the second growth curve.
It is worth noting that PLDC has always been a heavy stone in Dr.Peng Telecom&Media Group Co.Ltd(600804) performance. On January 28 this year, Dr.Peng Telecom&Media Group Co.Ltd(600804) issued an announcement of pre loss of performance in 2021. The company expects a net profit loss of 824 million yuan attributable to shareholders of Listed Companies in 2021. The important reason for the performance loss is the provision for impairment of PLDC.
According to the announcement at that time, based on the principle of prudence, the company plans to withdraw impairment reserves of about 2.25 billion yuan for assets that may have impairment losses in accordance with the requirements of the accounting standards for business enterprises. Among them, the proposed provision for impairment of construction in progress is about 1.718 billion yuan, mainly for the impairment of plcn submarine cable project.
The announcement shows that plcn submarine cable project is a submarine optical cable directly connecting Hong Kong, China and Los Angeles, the United States, built by Dr.Peng Telecom&Media Group Co.Ltd(600804) subsidiary. As of December 31, 2021, the amount invested is about 3.005 billion yuan, forming the book value of projects under construction is about 3.005 billion yuan.
For Dr.Peng Telecom&Media Group Co.Ltd(600804) , plcn submarine cable project is hovering on the balance beam of “good wishes” and “bone reality”. Although all the construction of the project has been completed, the submarine cable project has not been put into operation due to the international situation. According to the original idea of the company, as a cross The Pacific Securities Co.Ltd(601099) international submarine cable Benchmarking Project, submarine optical cable is expected to become the company’s “cash cow” business based on its scarcity and unique commercial and technical value. However, the current complex Sino US relations have led to the shortening or even interruption of the industrial chain of many multinational telecommunications enterprises, and the opening and operation of submarine optical cable projects can not be expected. Instead, the “cash cow” has become a chicken rib.
It is worth noting that this round of divestiture of plcn is in the critical time window of Dr.Peng Telecom&Media Group Co.Ltd(600804) transformation. In recent years, Dr.Peng Telecom&Media Group Co.Ltd(600804) has been steadfast in asset light transformation, light loading, focusing on operation services, realizing rapid growth of cloud business and creating a second growth curve. This transformation has also been recognized by market funds. On February 21, facing the development of digital economy and the east wind of “counting from the east to the west”, the company’s share price closed at the limit.
According to the introduction of Dr.Peng Telecom&Media Group Co.Ltd(600804) to the reporter of E company on February 21, the company is actively participating in the construction of “counting from the east to the west”, and the docking of some projects has been completed. In the middle of this month, Yuzhong county held a project construction docking symposium with Dr.Peng Telecom&Media Group Co.Ltd(600804) . The two sides exchanged matters related to the cooperation project of Dr.Peng Telecom&Media Group Co.Ltd(600804) 5g big data Industrial Park, and actively coordinated and solved the specific problems existing in the cooperation. In addition, at the unveiling ceremony of the national (Shenzhen Qianhai) new Internet switching center last year, 10 enterprises including Shenzhen smart city technology development group, Tencent and Dr.Peng Telecom&Media Group Co.Ltd(600804) signed an agreement of intent, becoming the first batch of users of the national (Shenzhen Qianhai) new Internet switching center.
