Shanshan: Japanese Textile Giant Buys Large Shareholder Equity

The global financial crisis has made the export intensive textile industry suffer a heavy blow. The performance of Shanshan stock (600884, closing price of 7.39 yuan) has also declined, and the stock price has plummeted from the highest price of 27 yuan in the past year, leaving only 4.13 yuan in November last year, or 85%. The collapse of Shanshan stock has become the opportunity of takeover of Itochu's textile company. The announcement issued by the Shanshan stock company shows that the company has recently received the notification from the controlling shareholder, Shanshan Group Limited (hereinafter referred to as Shanshan Group), that the Shanshan Group's controlling shareholder, Shanshan Klc Holdings Ltd (hereinafter referred to as: Shanshan investment), has recently negotiated with Itochu commercial firm. Shanshan investment intends to sell some of its stake in Shanshan Group (no more than 30% of the total equity of Shanshan Group) to the Itochu trading company (including its controlling shareholder). The matter is under negotiation, and there is uncertainty in the transaction. In 2008, the company reported that the Shanshan Group held 132 million shares of the company, accounting for 32.09% of the total share capital. The main business of the company is mainly divided into clothing and lithium batteries. Among them, the clothing revenue reached 661 million yuan in the first half of 2008, the gross profit margin was 23.54%, and the business income increased by 26.08% over the same period last year. According to the information, Itochu trading company was founded in nineteenth Century to start weaving, and Itochu's main business involves business activities such as trade and financial related businesses, project investment and so on. At present, it is the largest textile seller in the world. It is Japan's largest comprehensive trading company. It is also a world-famous multinational group and an old global top five hundred company. This time, Itochu's acquisition of Shanshan shares was the second time in the A share market. As early as 2003, the third largest shareholder of Vico essence (600152, closing price 3.55 yuan), Ningbo Textile Holding Group Co., Ltd. transferred the 14 million 100 thousand state-owned shares and 3 million 900 thousand shares of the company's corporate shares to Itochu trading company, and became the fourth largest shareholder of the company, with a total transfer price of RMB 37 million 440 thousand yuan. Itochu trading company from January 23, 2008 to February 15th, through the Shanghai Stock Exchange trading system to sell all the shares held by the company. In addition, reporters on his official website saw that Itochu commerce, in addition to the enterprises involved in China's textile industry, its wholly-owned subsidiary also acquired 50% of the GardenBanksBlocks in the Gulf of Mexico. Editor in charge: Yang Jing