The performance of a subsidiary that has not been sold for more than two years has reversed?
On October, Tonghua chemical (hereinafter referred to as Tonghua) Co., Ltd. decided to terminate the listing of 100% equity of Tonghua chemical (hereinafter referred to as Tonghua) Co., Ltd.
“Once you ignored me, now you can’t stand me.”. This may be the true portrayal of Tongzi chemical. During the previous sale, it was publicly listed twice and the price was reduced, but the transferee could not be found. However, due to changes in the industry, Tongzi chemical has dragged down the operation of listed companies and created more than 90% of its revenue. Naturally, this “sweet cake” Guizhou Salvage Pharmaceutical Co.Ltd(600227) is no longer willing to let go.
has never found the intended transferee
Previously, due to the weak profitability of Tongzi chemical, which dragged down the overall operating performance of listed companies, Guizhou Salvage Pharmaceutical Co.Ltd(600227) planned to sell 100% equity of Tongzi chemical at the end of 2019. In March 2020, the Guizhou Salvage Pharmaceutical Co.Ltd(600227) board of directors deliberated and passed relevant proposals, which officially kicked off the major asset restructuring.
However, the asset restructuring planned by Guizhou Salvage Pharmaceutical Co.Ltd(600227) has not been smooth. On March 30, 2020, the listed company officially listed 100% equity of Tongzi chemical in Guizhou Sunshine Property Right Exchange, and the listing period is from March 30, 2020 to April 13, 2020.
According to the information released by Guizhou Sunshine Property Right Exchange, the transferee of 100% equity of Tongzi chemical needs to be an enterprise legal person with more than 20 years of existence, experience in production, operation and management of synthetic ammonia, urea, methanol and other products and coal chemical industry, and continuous operation; At the same time, the proportion of the transferee’s own funds used for the transferee’s equity in the total transaction price shall not be less than 30%. However, during the listing period, the transferee did not intend to submit the application and relevant materials required for the transferee’s target project to the exchange.
Guizhou Salvage Pharmaceutical Co.Ltd(600227) was publicly listed again in Guizhou Sunshine Property Right Exchange on June 3, 2020 to transfer the underlying assets, reducing the listing price from 933 million yuan to 840 million yuan, 10% lower than the initial listing price, adjusting the amount of margin to 160 million yuan, and the starting and ending date of listing was June 3, 2020 to June 16, 2020. Other transaction terms remained unchanged. However, there is also no intention to submit an application to the transferee.
On August 25, 2020, the board of directors of the listed company authorized the management to continue to promote the sale of the underlying assets and find the intended transferee in various ways based on the conditions of the second listing.
Until March 10 this year, the board of directors of the listed company agreed to terminate the sale of 100% equity of Tongzi chemical.
Guizhou Salvage Pharmaceutical Co.Ltd(600227) said that the management of the company had established contact with several property rights exchanges in China to find the transferee and promoted the equity sale of Tongzi chemical through product promotion of property rights fair. However, as of the company’s decision to terminate this major asset restructuring, no intended transferee had been found, and the promotion of this major asset sale was less than expected.
reversed: creating more than 90% of the revenue of listed companies
Guizhou Salvage Pharmaceutical Co.Ltd(600227) persisting in selling Tongzi chemical is related to the decline of the company’s performance. The net profits of Tongzi chemical from January to September 2017, 2018 and 2019 were -164 million yuan, 588656 million yuan and -1.698 billion yuan respectively, and the net profits deducted from non net profits were -186 million yuan, 857473 million yuan and -1.699 billion yuan respectively.
In addition to the profit in 2018, Tongzi chemical has suffered losses for many years and its profitability is weak, which has dragged down the overall operating performance of the listed company. Therefore, through the sale of this major asset, the listed company plans to spin off the chemical fertilizer business with weak profitability, reduce the company’s operating burden and improve the company’s profitability and financial situation.
However, during the promotion of this major asset sale, great changes have taken place in the industry, industry and market environment of Tongzi chemical industry. After the outbreak of covid-19 epidemic, the world attaches great importance to the food problem, the consumption of chemical fertilizer has generally increased, China’s export demand has increased significantly, the supply of chemical fertilizer products is in short supply, and the price has reached an all-time high.
In 2020, Tongzi chemical realized a net profit of 493807 million yuan and a net profit of 763862 million yuan. From January to September 2021, Tongzi chemical realized a net profit of 188 million yuan and a net profit of 185 million yuan.
In this announcement, Guizhou Salvage Pharmaceutical Co.Ltd(600227) said that as of September 30, 2021, Tongzi chemical’s total assets accounted for 58.38% of the company’s total assets, its net assets accounted for 30.97% of the company’s net assets, and its operating revenue accounted for 93.77% of the company’s total operating revenue. The economic benefits of Tongzi chemical gradually improved, which played a good supporting role in the company’s sustainable operation.
