Stripping Housing Related Assets, Focusing On "Textile Main Industry", Oriental Sheng Hong, 683 Million Yuan Listing, Pfer Of Subsidiaries Equity And Debt.

In January 7th, Dongsheng Hong (000301) issued a notice that the company held a board of directors deliberation and adoption of the bill on the pfer of shares and claims of subsidiaries. It intends to open the listing paction through the equity trading institution in the form of "equity + creditor", and pfer the 100% equity interest held by Suzhou silk property Limited (hereinafter referred to as "silk real estate") with the RMB 683 million 111 thousand and 900 yuan as the base price, and the 90% equity and creditor's rights of the Wujiang silk real estate Co., Ltd.

Reporters noted that the silk real estate was established in December 2013, with a registered capital of 100 million yuan. It is a item company set up by the company to build a residential project "lotus pond month". It has a two level qualification for real estate development.

Its revenue was not realized in 2017, its net profit was 7 million 54 thousand and 500 yuan, and its revenue was 121 million yuan in 2018, and its net profit was 17 million 92 thousand and 500 yuan in 2018.

Silk real estate was established in March 2000, with a registered capital of 20 million yuan, and has a three level qualification for real estate development. At present, the main real estate projects are "Heng Yue square" and "Xin Yue Yuan".

Its revenue in 2017 was 9 million 126 thousand yuan, net profit was 783 thousand and 400 yuan, and its revenue in 2018 was 7 million 596 thousand and 700 yuan in 2018.

Net profit of 1 million 988 thousand and 400 yuan.

According to the asset based approach, as at October 31, 2018, the total value of the rights and interests of the shareholders of the silk house was 208 million 321 thousand and 500 yuan (the value-added rate was 99.97%), and the total equity value of the silk property shareholders was 58 million 731 thousand and 700 yuan (53.19%), and the 90% equity stake was worth 52 million 858 thousand and 500 yuan.

Therefore, the company holds 100% stake in silk real estate and 90% equity interest in silk real estate, corresponding to the total value of 261 million 180 thousand yuan.

As of the announcement date, the company owns 284 million 551 thousand and 100 yuan claims for silk property, and 137 million 380 thousand and 800 yuan claims for silk real estate. The total claims amount to 421 million 931 thousand and 900 yuan, and will be pferred to the assignee with the shares.

The company said that in August 2018, the company completed the 100% stake in Jiangsu state hope high tech fiber Co., Ltd., which was listed as a non-public offering.

After the reorganization, the core business of the company is the development, production and sale of civilian polyester filament.

The paction is mainly aimed at avoiding the impact of silk real estate and silk real estate business on the future development of the company and ensuring the healthy development of the main business of the company.

After the completion of the equity pfer, the company will no longer own silk property and silk real estate equity, and the scope of consolidated financial statements will change.