Huafang Textile Realized The Overall Listing Of Its Cotton Textile Business And Assets

Six years ago, Huafang spin The controlling shareholder of Huafang Group has promised to gradually inject Huafang Group's cotton textile business and assets into the company within six years, so as to realize the overall listing of cotton textile business and assets.

Six years later, the original commitment of the controlling shareholder failed to take place due to factors such as the poor status of the industry and the large impairment risk of the Group's cotton textile assets. The reporter noticed that the controlling shareholders who had not fulfilled their commitments gave solutions: they did not rule out replacing high-quality assets or other assets with strong profitability and no horizontal competition.

Industry downturn leads to failure of commitment

Recently, Huafang Textile suddenly said that the company was planning a major asset restructuring and suspended trading. Today, a Special Announcement on Major Asset Restructuring and Failure to Fulfill the Overall Listing Commitment of Huafang Group's Cotton Textile Assets may reveal the reasons for the suspension of Huafang Textile.

The announcement shows that on January 25, 2007, Huafang Group, the controlling shareholder of Huafang Textile, made the following commitment: after the completion of the additional issue, it will gradually inject Huafang Group's cotton textile business and assets into Huafang Textile to achieve the overall listing of cotton textile business and assets.

However, since 2011, due to the significant fluctuations in cotton prices, the rapid growth of various costs, the slow recovery of the international market, the cooling demand of the domestic and foreign textile markets, the lack of enterprise production power and other factors, the cotton textile industry is difficult to make profits, and it is difficult for the textile industry to improve its production and operation in an all-round way, leading to the Group's poor profitability of assets to be injected. The commitment of Huafang Group has finally become a dead letter, which also makes the investors of the company feel sorry.

Or replacement of real estate and hotel assets

For the failure of the commitment, Huafang Group said that in order to solve the horizontal competition between the listed company and its controlling shareholders, actual controllers and other enterprises controlled by them, as well as a large number of related transactions and other historical problems, it does not rule out replacing high-quality assets or other assets with strong profitability and no horizontal competition.

However, among the cotton textile assets of Huafang Group, few are worthy of being called high-quality assets. Only three companies were profitable in the first half of this year, but these three companies also had unstable performance.

The net profit of Huafang Wuhe Textile Co., Ltd. in the first half of the year was 813200 yuan, but it lost 21.431400 yuan last year; In addition, the net profit of Zhangjiagang Jiaguangtian Import and Export Trade Co., Ltd. in the first half of the year was 51.5525 million yuan, but it lost 37.3211 million yuan last year.

In fact, Huafang Group also said that it would not rule out the injection of other assets without horizontal competition. According to the official website of Huafang Group, the group has hotel assets, real estate assets and financial assets in addition to cotton textile assets. The hotel assets include a modern large-scale intelligent five-star Huafang Jinling International Hotel, and a three-star Huafang Garden Hotel. Zhangjiagang Huafang Real Estate Development Co., Ltd., which is included in the real estate assets, has successfully developed several projects.