On February 23, Shanghai Feilo Acoustics Co.Ltd(600651) (hereinafter referred to as ” Shanghai Feilo Acoustics Co.Ltd(600651) “) announced that the company had pre listed and transferred 100% equity of Shanghai Feile Investment Co., Ltd. (hereinafter referred to as “Feile investment”) in Shanghai United equity exchange (hereinafter referred to as “Shanghai Stock Exchange”). This pre listing is only a pre disclosure of information and does not constitute a transaction. The counterparty is not clear, the transaction contract has not been signed, and there is no performance arrangement. Subsequently, the company will audit and evaluate the 100% equity of Feile investment on the base date of December 31, 2021. According to the progress of this transaction, prepare a report on the sale of major assets and perform the corresponding deliberation procedures of the board of directors and the general meeting of shareholders.
Shanghai Feilo Acoustics Co.Ltd(600651) the person from the board office told the reporter of Securities Daily that at present, the action of selling equity is still in the plan stage, and the next strategic planning of the company is subject to the announcement.
It is reported that Feile investment takes xiwannian group as the core, and its main business is the wholesale and retail of light source and lamp products and lighting engineering channels. On January 28, 2022, the seventh meeting of the 12th board of directors of the company deliberated and approved the relevant matters of Shanghai Feilo Acoustics Co.Ltd(600651) transferring all the equity of its wholly-owned subsidiaries Yaming Lighting and Feile construction to its wholly-owned subsidiary Feile investment free of charge. This transfer has been deliberated and approved by the first extraordinary general meeting of shareholders in 2022 held on February 15, 2022, It can only be implemented after being reviewed and approved by the competent authority of state-owned assets supervision and administration. After the completion of this transfer, Feile investment will hold 100% equity of Yaming Lighting and Feile construction, and Feile investment will become the management platform of Shanghai Feilo Acoustics Co.Ltd(600651) lighting business.
According to the audit report of Feile investment in 2020 and the third quarterly report of 2021, its net profit in 2020 and from January to September 2021 were – 211 million yuan and – 165 million yuan respectively, and the cash flow from operating activities showed a net outflow. At the end of September 2021, the net assets of Feile investment were -1.728 billion yuan, and the asset liability ratio was as high as 184.22%
Yaming Lighting lost 77.7817 million yuan in 2020 and 28.8118 million yuan in the first three quarters of 2021. Feile construction lost 4.5463 million yuan in 2020, and only 19700 yuan of net profit attributable to the parent company in the first three quarters of 2021.
Shanghai Feilo Acoustics Co.Ltd(600651) said in the announcement of major asset sale plan that in recent years, Feile investment, Yaming Lighting and Feile construction have been in poor operating conditions and are in a state of continuous loss, which has greatly dragged down the overall operation and development of listed companies. Through this transaction, the company can spin off the loss lighting business, so as to improve the sustainable operation ability, help the company improve the asset quality and financial status, promote the upgrading and transformation of its own business, further optimize the asset structure, enhance the core competitiveness and achieve sustainable development. After the completion of this transaction, the company will concentrate its resources, strive to improve its sustainable operation ability and profitability, optimize asset quality, enhance value and safeguard the interests of minority shareholders.
So why is the lighting business of Shanghai Feilo Acoustics Co.Ltd(600651) so difficult to develop?
In an interview with Securities Daily, a person in the lighting industry who asked not to be named said that at present, the demand of the lighting industry, especially the intelligent lighting business, is rising. According to the panoramic survey and investment scale forecast report of China’s intelligent lighting industry from 2022 to 2028 released by Zhiyan consulting, the scale of China’s intelligent lighting industry in 2021 is about 109.68 billion yuan, A year-on-year increase of 40.49%. However, due to covid-19 epidemic and other factors, the market continues to fluctuate. The rising cost of home decoration raw materials also promotes the rising cost of lighting products, and many businesses just try their best to support it. Especially for businesses involved in overseas business, the amount of loss is huge in recent years.
Shanghai Feilo Acoustics Co.Ltd(600651) in the previous performance announcement, it was also said that affected by the overseas covid-19 epidemic, market fluctuations and the sharp depreciation of the euro, the operating revenue of the company’s lighting business segment increased only slightly compared with the previous year. Although the company continued to promote cost reduction and efficiency increase, the expected loss in 2021 is still about 340 million yuan (including the provision for impairment). In 2021, the euro depreciated sharply against the RMB and the US dollar, of which the euro depreciated by more than 10% against the RMB, resulting in an exchange loss of about 190 million yuan.
Shanghai Feilo Acoustics Co.Ltd(600651) said that before the transaction, the core business of the listed company included three parts: intelligent hardware products, solutions and inspection and detection. Among them, the intelligent hardware part included automotive lighting, body control, module packaging, chip test services, intelligent lighting and other businesses; The solutions sector includes businesses such as smart water, smart manufacturing and industrial Internet security. The company is committed to becoming a leading provider of intelligent hardware and industrial intelligent solutions. After the completion of this transaction, Feile investment will no longer be included in the consolidated statements of listed companies, which is expected to have a positive impact on the profitability of listed companies.
