The Oldest Cotton Mill In China Wants To Transfer 282 Million Yuan.

Shanghai Shengda Limited by Share Ltd (hereinafter referred to as "Shen Da stock") announced in the evening of November 13th that the fourth meeting of the tenth board of directors held by the company today passed the motion on the transfer of 100% rights and interests of the limited company in Shanghai seventh cotton mill with nine votes, no vote and no abstentions. The assessment of the above transfer rights and interests has been completed. As at base date August 31, 2019, the book value of the above rights and interests was assessed at 76 million 269 thousand and 900 yuan, with an assessment value of 282 million 327 thousand yuan (for state assets for record), an appreciation of 206 million 57 thousand and 100 yuan and an appreciation rate of 270.17%.

Shen Da shares said that the transaction matters still need to be submitted to the shareholders' general meeting for deliberation. The board of directors invited the Licensing companies chairman or general manager of the shareholders' meeting to handle relevant rights transfer matters and sign relevant documents.

The bulletin shows that the asset valuation method, which has the qualification for securities and futures business, is evaluated by the asset based approach and the income approach. On the basis of the assessment baseline date, considering the current status of the seven cotton mill Limited, the asset based law can better reflect the total interests of shareholders. Therefore, the asset based approach is adopted as the evaluation conclusion.

Seven cotton mills limited, August 31, 2019, assessed the value of current assets, illiquid assets, total assets, current liabilities, total liabilities, book value of owners' equity, assessed value, assessed appreciation and assessed appreciation rate as follows:

The assessment value of the 100% rights and interests of Shenda holding seven cotton mill Co., Ltd. is 282 million 327 thousand yuan (pending the filing of state assets).

Shen Da shares said that the transfer of the underlying rights is required for the company's industrial restructuring. After preliminary calculation, if the transaction price of the transfer of the rights and interests of the seven cotton mill Limited is 282 million yuan, the net profit of the transfer is estimated to be about 150 million yuan (the above data are not audited, and the final impact on the company's net profit will be based on the audit data of the accounting firm).

After the transfer of the 100% rights and interests of the seven cotton mill Limited, the seven cotton mill Limited will no longer be the company in the consolidated statement. The company does not exist for the seven cotton mill limited to provide guarantees, commissioned seven cotton plant limited company's financial management, and its occupation of company funds and so on.

The first textile net reporter learned from the announcement that Shanghai seventh cotton mill Co., Ltd. is a wholly owned company of Shenda group, founded in March 30, 1990. In order to further deepen the reform of state-owned assets, promote the healthy development of enterprises and safeguard the legitimate rights and interests of workers, Shenda shares were renamed and renamed to seven cotton in August 22nd of this year. The "Shanghai seventh cotton mill" was renamed "Shanghai seventh cotton mill Co., Ltd.". The type was changed from "ownership by the whole people" to "limited liability company (wholly owned by a non natural person investment or holding company)".

According to the data disclosed by Shen Da in October 29, 2005, Shanghai seven cotton has 70 thousand spindles and 25 thousand line ingots. The products mainly include series yarn sewing thread such as ring yarn, twister yarn, polyester core wire and so on, with an annual output of about 8000 tons.

The first textile net has learned from the announcement that the Shanghai seventh cotton mill Co., Ltd. was established in March 30, 1990, with a registered capital of 61 million 430 thousand yuan. Its main business is the production and sale of finished products of spinning thread sewing line, its own house leasing, its own equipment leasing (not engaging in financial leasing), exhibition and display services, property management, the design, production, agency and publication of all kinds of advertisements.

Baidu's data also show that the seventh cotton mill in Shanghai has evolved as follows: in 1919, Baocheng cotton mill first plant was added to 1920, Baocheng cotton mill was built in two factories, 1926 was pleased and cotton mill one or two plants (Japanese capital). 1931, the fifth, sixth, seventh factory (Japanese capital) of Japan Textile Co., Ltd. (1944, the fifth textile mill of Shanghai textile factory was changed to Guang Lai sew workshop). 1946 China Textile Construction Company seventh seventh textile mill to Shanghai seventh state-run cotton mill.

In 1997, the bankruptcy of pallet enterprises in Shanghai thirty-seven plant, now has 700 million spindles, 30200 ring spindles, and 9998 times the spindle. The main product is "double tiger" pure polyester sewing thread. The product has been awarded the silver award and has the characteristics of "the longest history, the largest size, the best quality and the best quality" in the country. Since 1990s, it has been carrying out technological transformation, and has introduced the world's progressive doubler, automatic winding machine, high-speed wire doubling machine and cleaning equipment. The product quality has been greatly improved, and the market share has been expanding. The situation of direct export is developing rapidly. At present, the products are sold to more than 20 regions, such as Hongkong, Taiwan, Europe and the United States and the Middle East.

According to public information, Shenda group is a diversified operation company mainly based on import and export trade and industrial textiles research and manufacture. Its main business includes industrial textiles business mainly based on automotive interior decoration and new textile materials business, as well as textile import and export trade and domestic trade. Among them:

(1) industrial textiles business

1. automotive interior and acoustic components

Shenda's largest business at present is the automotive interior and acoustic components business, which is mainly used in vehicle acoustic solutions to reduce vehicle noise. The product line includes automotive carpet products and other textile interior products based on fiber material and die technology, such as carpet assembly, sound insulation pad, shock absorber, rear window, wheel arch lining, luggage decorations, etc. The main customers are general motors, Ford, Jaguar Land Rover, Daimler, Fiat Chrysler, TOYOTA, Honda, Volkswagen, BMW, Geely and so on.

2. new textile materials business

Shenda share textile new material business mainly deals with flexible coating composite materials, including biogas membrane structure, building membrane structure, waterproofing membrane, oil barrier, inflatable material, vehicle Pongab and a variety of geosynthetics, which can be applied in building geotextiles, transportation, aerospace, environmental protection, medical, military and other industries.

(two) import and export business

The import and export business is the traditional main business of Shenda group, which covers textile and clothing and household textiles and other import and export businesses, without retail business and retail stores.

During the reporting period, Shenda related enterprises continued to adhere to the strategy of transferring production centers to low-cost countries and regions such as Southeast Asia, set up garment factories in Kampuchea, set up offices in Vietnam, and seek cooperation factories in Bangladesh to reduce production costs. At the same time, a sample factory was set up in Taicang, Jiangsu, to make samples for the design of the internal business department, so as to shorten the sampling period, supervise the sample quality and control the proofing cost effectively. In addition, in recent years, Shenda has devoted itself to building up a supply chain integrator for textile trade business. From the aspects of fabric development and purchase, garment design, plate making and garment making, it provides a series of package services such as design, research and development, production organization, quality control to customs, commodity inspection fund coordination, etc. for upstream customers such as brands, channels and buyers.

According to the financial report, in the first three quarters of 2019, Shenda shares achieved a total revenue of 11 billion 20 million, down 9% from the same period last year, and realized net profit of 370 million, an increase of 282% over the same period last year, and the earnings per share were 0.43 yuan. During the reporting period, the gross profit margin of the company was 9.9%, down 1.4 percentage points from the same period, and the net interest rate was 2.9%, up 1.8 percentage points from the same period last year.

During the reporting period, non recurring gains and losses totals 510 million yuan, which has a greater impact on net profit. After deducting non recurring gains and losses, the net profit to the parent is -1.4 billion yuan, down 339.5% compared with the same period last year.

During the period, the cost rate increased by 2.2%, which was a drag on company performance and a significant decrease of 476.9% in operating cash flow.

During the reporting period, the operating cost of Shenda's shares was 9 billion 930 million, down 7.6% from the same period last year, lower than the 9% decline in operating income, and the gross profit margin dropped by 1.4%. The cost of the period was 12.2%, up 2.2% from the previous year, which was a drag on the company's performance. Operating cash flow decreased from 4 million 821 thousand to -1816.8 million, down 476.9% from the same period last year.