Frog Prince (China) Intends To Sell Fujian And Run 45% Stake

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We are facing the bonus period of development, but some local brands are under pressure from the double squeeze of e-commerce channels and import brands.

Recently, the China children's care company, which owns the Frog Prince's brand, has announced that the Frog Prince (China), a wholly owned subsidiary of the company, has entered into a share pfer agreement with the wal Sheng asset management center of Qianhai, Shenzhen. Accordingly, Frog King (China) intends to sell 45% stake in Fujian and run, with a cost of 100 million yuan.

It is understood that Fujian and run was established in June 2016 through China.

The sales activities (distribution business) of children's personal care products of the group were carried out by the Frog Prince (China) before the operation.

Fujian run has a wholly-owned Affiliated Companies Frog Prince Brand Management Co., Ltd., Fujian, holding the intellectual property rights of the group, including the Frog Prince trademark.

At present, Fujian and run by the Frog Prince (China) and Shenzhen Qianhai Wo Sheng asset management center have 75% and 25% of equity interest respectively.

After the paction is completed, the rights of Frog Prince (China) in Fujian and run will be reduced from 75% to 30%, while Fujian and run will no longer be a Affiliated Companies for Chinese child care.

It is expected that child care in China will get an estimated yield of about 66 million 400 thousand yuan for the sale.

The reason why the sale of assets is directly due to the poor performance of Chinese child care in recent years.

Chinese child care announced in the announcement that the combined performance losses in the recent fiscal year were partly attributable to the deteriorating operating performance of the distribution business.

The directors anticipate that the sale can significantly reduce group losses and optimize the asset allocation of the group in order to cope with the adverse operating environment.

The directors believe that the sale can terminate the loss distribution business and enable the group to focus on R & D and manufacture of personal care products for children, aiming at developing new products with higher quality, thereby enhancing market competitiveness.

Last year's annual report showed that the company achieved a profit of about 999 million yuan in the year ended December 31, 2016, an increase of 9.4% over the same period last year, and the loss of equity holders in the year was 111 million yuan, an increase of 1.21 times compared with the same period last year.

During the reporting period, children

The yield was about 536 million yuan, down by about 30.4% compared to the same period last year. The income of adult personal care products and other products, including OEM products, was about 179 million yuan, up by 24.7% over the same period last year.

Meanwhile, the gross profit margin of child care in China dropped by about 3.7 percentage points to about 35.6% last year compared with the same period last 2015.

Chinese child care indicates that the decrease in gross margin is mainly due to the lower gross margin of commodity trading business, which has led to a decline in gross margin of the group.

Since 2013, the data of child care in China has begun to show a downward trend.

In fiscal year 2013, China's child care business income was about 1 billion 712 million yuan, an increase of 8.9% over the same period last year.

But in the 2014 fiscal year, the company's operating income was 1 billion 483 million yuan, down 13.4% from the same period last year.

In 2015, there was the first loss since 2011, when operating income was 914 million yuan, down 38.4% from the same period last year, with a net loss of 50 million 300 thousand yuan.

Although it has been defined as the first child care company.

But with the release of the "two child policy" and the strong entry of foreign brands, the pressure of child care in China has increased and the performance has continued to decline.

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