Main business loss inability to develop sideline nanning sugar industry to sell its profitable assets

Last year by selling assets to achieve the burden and the loss of Nanning sugar (market, interrogation) (000911,SZ) recently staged a similar play code. July 25, the company announced that the first listing price is not less than 260 million yuan price, the sale of the holding subsidiary of Nanning Qiao Hong New Materials Limited Liability company (hereinafter referred to Qiao Hong Company) 100% Equity, is expected to increase the net profit of the listed companies about 37.81 million yuan. However, with the previous initiative to sell losses of pulp and paper industry assets, Nanning sugar the sale of overseas Hong Company is helpless. Company securities related People told the "Daily Economic news" reporter, Qiao Hong Company was founded when foreign investors have asked to withdraw funds after ten years, if not sold, Nanning Sugar will have to acquire foreign shares, based on the main business downturn, the company chose to sell the assets of the scheme. Just a few days ago, Nanning Sugar released a semi-annual report of the results of the forecast, the first half of the company is expected to lose up to 37 million ~6800 million. If the deal is reached, Nanning Sugar 2014 annual consolidated statement will increase the cash 130.36 million yuan, increase net profit of about 37.81 million yuan. Main business losses inability to develop sideline industry according to Nanning Sugar announcement, Qiao Hong Company was founded in December 2001, is a SAP composite fiber super absorbent material manufacturers, mainly used in sanitary napkins, pads, baby diapers and other products, is a few well-known enterprises (Procter and Gamble Company, Heng an company, etc.) suppliers. As of August 31, 2013, Nanning Sugar Industry held its 50.14% stake. Nanning sugar Industry, said the company intends to join the other major shareholders will be held by the company's 100% stake in the Guangxi Joint Equity Exchange publicly listed transfer, the first listing price will not be less than 260 million yuan. Nanning Sugar Securities Department of the relevant people to the "Daily economic news" reporter said, although the company can also acquire foreign shares, but given that the company is to do absorbent materials, and the company's main business difference is large, if too much money into it is not appropriate And if the company's acquisition of shares must be in the production line and other aspects of upgrading and expansion, so that the investment is also a lot of capital, now the company's main business encountered bottlenecks, investment in the development of sideline is not appropriate, based on these considerations, the company chose the overall sale of the scheme. The announcement showed that the company realized its operating income of 179 million yuan in 2013, realized a net profit of 15.61 million yuan, realized operating income of 90.24 million yuan in the first half of 2014, realized net profit of 9.09 million yuan, and net interest rate was 8.7% and 10% respectively, which is much higher than the net interest rate of sugar industry. However, the securities Department believes that if you do not need to buy shares or upgrade the production line, do not invest too much money, the company does this is no problem, but the performance of overseas Chinese rainbow Company has a profit of more than 10 million yuan, bad time is millions of yuan, if the company as the year before the loss of severe words, Its contribution rate may be bigger, but if the company is profitable, its contribution rate is actually not high, and selling subsidiaries is now a relatively good time, if the lossTo sell, the value is low. Sugar Hope policy support data show that 2013 Nanning sugar industry to achieve operating income of 4.399 billion yuan, to achieve a net profit of 49.37 million yuan, of which non-mobile assets disposal profit and loss amounted to 266 million yuan, access to government subsidies up to 55.86 million yuan, deducted after the loss of 260 million yuan. Since this year, Nanning sugar industry has not been able to shake off the downturn. Earnings show that the first quarter of the company to achieve operating income of 618 million yuan, down 24.98%, to achieve the ownership of the listed company's shareholders net profit of 58.9544 million yuan, the first half of this year is expected to lose 37 million ~6800 million. Nanning sugar industry said, sugar market continued to slump, the price of white sugar fell, sales than the same period decreased, resulting in loss; at the same time, after two years of pulp and paper industry structure adjustment, this year has been effective control of pulp and paper industry losses on the company's performance impact, but has not been fully lost. Data show that Nanning sugar 2013 to 691 million yuan to sell its Bu Miao paper mill assets on the thickening company's annual net profit of about 80 million yuan. The securities department said to reporters that last year the company withdrew from the paper and pulp business is a loss and market saturation is very high industry, the future company will focus on the main industries. But in the industry's view, in addition to the sale of assets to save themselves, Nanning Sugar can take the initiative to deal with the crisis is not a lot of measures. The securities ministry said that, in the enterprise itself, is energy saving, reducing the effect of the increase, the external can only be forced to relax before the relevant policy support and support efforts and the trend of sugar prices. The reporter learned that there is no relevant policy on sugar companies, and now the sugar cane from the squeeze season also has a few months, sugar companies can not predict the future price of the purchase will be how to change. This July, due to Typhoon Wilson invasion of Hainan, Guangxi and other land, resulting in local sugarcane cultivation is not small impact, resulting in a small rebound in sugar prices, but eventually did not appear to rebound in the bottom of the signs. The securities ministry said that because sugarcane is still in the growth stage, even if there is a large area of lodging is easy to recover, so the overall impact on the industry is not big.