Xing seiko spring (002547) announcement today, the company is planning a major asset to the company at shenzhen exchange, the recent sale attention matters and related party transactions issued by letter in reply, the company said the sale of assets, is to further focus on business development, seize the 5 g development opportunity, concentrate on developing the existing main business, and to improve the company's financial situation, increase liquidity, reduce the company's debt and financial cost.
Xing seiko spring (002547) announcement today, the company is planning a major asset to the company at shenzhen exchange, the recent sale attention matters and related party transactions issued by letter in reply, the company said the sale of assets, is to further focus on business development, seize the 5 g development opportunity, concentrate on developing the existing main business, and to improve the company's financial situation, increase liquidity, reduce the company's debt and financial cost.
Previously, chunxing jinggong announced that it planned to sell 80% of the equity of huaxinke and World Style (hereinafter referred to as "the target company") to Shanghai wensheng asset management co., LTD. (hereinafter referred to as "wensheng asset") or its designated third party for a price of 920 million yuan, and to terminate the agreement to acquire 20% of the equity of huaxinke and World Style.
We will promote the 5G and new-energy automobile industries
About the reason of selling assets, spring and seiko said in reply, huaxin branch and the World Style main business for electronic components distribution, the core of its business model depends on the continued low cost financing ability, expanding agent product line at the same time, through the payment days, the price advantage so as to obtain more clients, on this basis to do mass. The rapid development of huaxinke and World Style has occupied a large amount of capital of listed companies, which to some extent has restricted the development of the company's original main business.
In order to further focus on the development of the main business, the company decided to concentrate on the capital advantage, focusing on the existing main business development. Spring seiko said, is currently in 5 g industry and the development of new energy vehicles industry key period, company sell huaxin branch and the World Style, on the one hand, can quickly drained a large cash, the company will have sufficient funds to main business, through increased investment in research and development, optimize the marketing system, and according to the existing key customer requirements for production optimization and reasonable expansion, promote the steady development of the company main business.
The company said, on the other hand, the sale of huaxinke and World Style will significantly improve the company's financial situation, increase capital liquidity, effectively reduce the company's debt scale and financial costs; Secondly, according to the current agreed transaction consideration, compared with the equity payment of 440 million yuan paid by the company for 80% of the equity of huaxinke and World Style in 2017, considerable asset disposal income will be generated.
Selling assets does not hurt profitability
As for the original main business segment, chunxing seiko said that in 2019, the company has significantly improved the operating performance of the original main business segment by implementing the internal management reform, further improving the process capacity, improving the production efficiency, improving the management efficiency and strengthening the incentive mechanism of various business divisions. At the same time, the company selling the target company will not have a significant adverse impact on the company's profitability.
In terms of communication business, chunxing seiko has established itself as the main supplier in the core customer system, and has been steadily developing new major customer businesses. In addition to the original communication structure, filter products, the company's reserve ceramic filter, antenna business will gradually increase in the existing customers.
In the automotive business segment, the company mainly produces the new energy vehicle "three electric system" precision aluminum alloy structural parts. The company has established cooperative relations with tesla, schneider, malebel and other new energy automobile manufacturers for many years. With the technological progress, cost reduction and demonstration effect brought by the localization of tesla in the industry chain of new energy vehicles, the new energy vehicle industry will continue to grow.
In addition, in the field of consumer electronics business, it is understood that the glass cover business of the company's subsidiary shenzhen kaemao has reached strategic cooperation with corning, and has successfully entered into huawei, OPPO and other major mobile phone customers, and entered the field of smart watches. The company said, on the one hand, the wave of mobile phone replacement brought by 5G will bring the demand and sales recovery of the whole mobile phone industry, on the other hand, the glass cover will replace the original metal case as the standard configuration. With the sales growth of major customers huawei and OPPO, the overall sales are expected to be good.