*ST Kerry (002072):0 Yuan Transfers 3 Subsidiaries

Original title: 0 yuan transfer 3 subsidiary *ST Kerry end of the year to throw away the burden

As the new year is approaching, ST also enters the critical period of shell protection. In order to get rid of the burden, *ST Kerry (002072) intends to deal with 3 subsidiaries by 0 yuan.

In the evening of December 18th, *ST Kerry announced that in order to streamline the company structure, save management costs and throw away the burden, the company intends to transfer the 100% stake of Tianjin de cotton Mining Co., Ltd., the 51% stake of Beijing Sheng Tong Heng Technology Co. Ltd., and the 100% stake of Baoyu Feng Technology Co., Ltd. in Beijing, and transfer it to Beijing Qian Yuan Hongsheng Enterprise Consulting Co., Ltd., the stock transfer price is 0 yuan. After the completion of the equity transfer, *ST Kerry no longer enjoys any shareholder rights and no longer assumes any shareholder obligations.

0 yuan to sell 3 subsidiaries, investors inevitably feel strange. However, *ST Kerry also explained the transfer price in the announcement: Sheng Tong Heng and Bao Yu Feng currently account for 0 yuan, and there is no actual operation; Tianjin de cotton has a net assets of 7 million 253 thousand and 400 yuan, but in view of its state of being out of control, and the shares are sealed up and there is no actual operation, the three companies' stock transfer pricing is based on 0 yuan.

At the same time, the announcement also pointed out that the subject matter of the transaction had been sealed up and frozen at present, and Sheng Tong Heng An and Tianjin de Mian were out of control.

For *ST Kerry, if it wants to stay out of the market, the company must undergo many tests such as net profit, net assets and audit report in 2019.

From the perspective of net assets, in 2018, Beijing earned a reputation of $174 million from the data limited company. The net profit loss of the company was 250 million yuan, and its net assets amounted to -1.89 billion yuan. Since 2019, the net assets of the company had changed to -2.08 billion in the three quarter of 2019. Avoiding net assets in the 2019 year will be a huge challenge for *ST Kerry.

In October of this year, *ST Kerry received notice from the Dezhou intermediate people's court that the company's creditor COFCO International Singapore Limited had applied for bankruptcy and liquidation to the Dezhou intermediate people's court. If the Dezhou intermediate people's court formally accepted the bankruptcy liquidation of the company, the company will cooperate with the relevant bankruptcy liquidation work in accordance with the law, and the company will have the risk of being declared bankrupt.

*ST Kerry believes that up to now, the above-mentioned transfer companies have no actual operation. Through the transfer of shares, it will help improve the efficiency of internal management, focus on the core business development of the company, reduce the negative factors that affect the company, and better accomplish the strategic layout of the company. The sale of shares is expected to have a certain impact on the company's profit and loss in 2019.