Sequela Of Epidemic Situation! The Chinese Textile 100 Strong 200 Million Acquisition Of The American Home Textile Company Bankruptcy Liquidation!

Shanghai Shenda Limited by Share Ltd, which is the top Chinese textile and garment exporters in 2017, has announced in the evening of June 10th that the company's overseas holding subsidiary is PFIHoldings. LLC (hereinafter referred to as "PFI company") has been seriously affected by the Sino US trade friction and outbreak (the outbreak of the main business) and sustained losses. At the eighth meeting of the tenth board of directors held today, the company adopted the motion on the bankruptcy liquidation of the subsidiary company PFIHoldings and LLC, and agreed to submit an application for bankruptcy and liquidation by the PFI company to the local court.

The announcement shows that in 2015, Shanghai Shenda import and Export Co., Ltd., a wholly owned subsidiary of Shenda group, indirectly acquired the 100% stake in PFI company of the United States through the subsidiary company CROSSRIVER, LLC (hereinafter referred to as "CR company"). The project was completed in November 2015, and the purchase price was $31 million 710 thousand and 800, equivalent to 202 million 527 thousand yuan.

PFI company (registered address: 121W.LongLakeRoad, 3rdFloorBloomfieldHillsMI48301), the main business location is located in Sherlock, North Carolina, USA; its business involves bed products and home textiles, heating products and handmade yarns, and its main customers include the famous department stores and business customers in the United States. Since the second half of 2017, under the adverse effects of the "US priority" policy and the continued warm winter in the United States, PFI has lost significant customers, resulting in shrinking sales and declining profitability. In 2018 and 2019, the company raised 22 million 467 thousand and 700 yuan and 10 respectively for goodwill acquired by PFI company. As for December 31, 2019, the book value of the goodwill was 0 yuan as of 9 million 954 thousand and 500 yuan.

In 2020, the outbreak of the outbreak, the sharp decline in the market demand in the United States, resulting in PFI subsequent orders interrupted, gradually expanded losses, operating capital turnover difficulties. As of May 31, 2020, the total assets of PFI were 109 million 833 thousand and 800 yuan, of which the final balance of Monetary Fund was 3 million 417 thousand and 400 yuan, the total liabilities were 99 million 750 thousand and 400 yuan, the undistributed profit was -2805.30 million, and the owner's equity was 10 million 83 thousand and 400 yuan (Unaudited).

In order to maintain its normal operation, CR has provided some financial support as its shareholder. As of May 31, 2020, the PFI company's assets and liabilities ratio has reached 90%, and the balance of shareholders' loans is 56 million 246 thousand and 800 yuan. If we want to maintain its continuous operation, shareholders still need to provide follow-up financial support, and the risk can not be predicted. Weighing the pros and cons, Shen Da shares intends to terminate the operation of PFI and submit a bankruptcy petition to its local court (the estimated amount of realizable assets is less than the book value, which is actually insolvent), and the PFI company will be liquidated under the auspices of the court.

According to public information, Shenda group is a diversified operation company mainly based on import and export trade and industrial textiles research and manufacture. Its main business includes industrial textiles business mainly based on automotive interior decoration and new textile materials business, and textile import and export business. The predecessor of the company is Shanghai Shenda textile and apparel group company, founded in December 1986. It was transformed into a joint-stock enterprise in 1992. It was listed in January 7, 1993. It is an export oriented export oriented joint stock company established by Shanghai. It is an interdisciplinary business with many fields, such as cotton textile, printing and dyeing, clothing, line, industrial textiles, automobile decoration, domestic and foreign trade, real estate, and so on. Industry, trans regional, export-oriented, multi-functional comprehensive large-scale enterprises.

Previously, there were public reports that Shenda's wholly-owned subsidiaries include Shanghai seventh cotton textile mill, Shanghai thirty-six cotton textile mill, Shanghai Torch Industrial cloth factory, Shanghai second printing and dyeing factory, Shanghai third line factory and 22 subsidiary companies, 16 of which are located in Shanghai City, and have huge land reserves. The company has more than 600 acres of land near Shanghai Disneyland, more than 150 acres of land near World Expo stadiums, hundreds of acres of land in central Shanghai and north the Bund, and more than a thousand acres of land near the F1 international circuit, central and outskirts.

In 2019, Shenda's main business income was 14 billion 662 million yuan, 9.89% less than that of last year, and its total profit was 139 million yuan, down 44.15% from the same period last year. Among them, the total business income of the main business of the company is 8 billion 914 million yuan (before offset), accounting for 56.17% of the total revenue of the company's main business (before offset), with a total profit of 557 million yuan. The main business income of overseas enterprises (before offset) is 6 billion 958 million yuan, accounting for 43.83%, and the total profit is -4.18 billion yuan.

During the reporting period, the total profits of Shenda's shares were mainly domestic enterprises, equity investment enterprises and investment income from the sale of assets. Among them, sixth of the proceeds from the disposal of Shanghai 100% cotton mill Co., Ltd. were 688 million yuan and the investment income of NYX company was 103 million yuan.

Sub sectors:

The main customers of Shenda's automotive soft decoration business are general motors, Ford, Jaguar Land Rover, Daimler, Fiat Chrysler, TOYOTA, Honda, Volkswagen, BMW, Geely, BYD, BYD and so on. During the reporting period, the main business revenue of the sector was 8 billion 743 million yuan, down 12.97% compared with the same period last year, with a total profit of -2.19 billion yuan. Among them, 70% of the company's foreign holding subsidiary Auria company's main business revenue is 6 billion 391 million yuan, the total profit is -3.48 billion yuan. Excluding Auria companies, other enterprises in the sector realized total revenue of 2 billion 365 million yuan, down 12.39% from the same period last year, with a total profit of 168 million yuan and a decrease of 12.76% over the same period last year.

In order to reduce the impact of trade friction on enterprises, shendaku, the main body of the new textile material business, has actively cut back about 30% of the US orders. Meanwhile, by expanding the market expansion in Europe, South America, the Middle East and China, we have actively developed the product development mode with the ultimate customer base, strengthened the development of new products, and so on, so as to maintain the sales scale. During the reporting period, the main business income of Shenda group reached 197 million yuan, down 0.43% from a year earlier. However, due to the reduction of demand for Australian customers in Shenda group, sales fell by about 35% during the year, and domestic environmental protection requirements gradually increased, resulting in obvious increase in cost and major market fluctuations in membrane structure products. The gross profit margin of the business segment during the reporting period was significantly decreased, with a total profit of 8 million 933 thousand yuan, down 15.91% from the same period last year.

The import and export business has achieved 5 billion 684 million yuan in main business income, a decrease of 4.89% over the same period, and a total profit of -2.04 billion yuan. Among them, the sales revenue of overseas enterprises (before offset) was 566 million yuan, and the total profit was -9765.59 million yuan. The main business income of domestic enterprises (before offset) was 5 billion 584 million yuan, and the total profit amounted to -1.06 billion yuan.

In 2020, Shen Da shares will start from two aspects: "strengthening the foundation" and "cutting expenditure and opening up". In order to enhance the risk management and control as the cornerstone, we can resolve the negative impact of all factors on the company through synergy and innovation development, and achieve quality improvement and efficiency enhancement. The company plans to achieve 13 billion yuan in operating income, 13 billion 145 million yuan in operating costs and 150 million yuan in profits, and the net profit attributable to shareholders of listed companies is 86 million 120 thousand yuan.