The news of the restructuring of Zhengzhou Nissan was finally settled. The poor performance impacted the market performance of Dongfeng, and was eventually divested as a bad asset by the holding company.
On June 13, the listed company Dongfeng Co., Ltd. ("Dongfeng Shares") announced that it signed the "Equity Transfer Agreement on Zhengzhou Nissan Automobile Co., Ltd." with Dongfeng Motor Co., Ltd. ("Dongfeng Limited"), the company will price 78.75 billion yuan. 51% equity of Zhengzhou Nissan held by its controlling shareholder Dongfeng Limited Transfer Company. Thereafter, Zhengzhou Nissan will no longer be included in the consolidated financial statements of Dongfeng.
In recent years, Zhengzhou Nissan's performance has continued to decline. Dongfeng Co., Ltd. intends to divest non-performing assets through the transfer of equity, reducing the impact on the company's earnings and operational risks.
In 2005, Dongfeng Co., Ltd. acquired 51% equity of Zhengzhou Nissan for 336 million yuan and increased capital by 530 million yuan after three years. At the beginning of the merger, the production and sales scale of Zhengzhou Nissan did help the Dongfeng shares. As early as 2010, its sales volume exceeded 100,000 units. After three consecutive years of sales growth, Zhengzhou Nissan announced its mid-term business plan in 2014, setting the sales target for 2016 to 200,000 units.
However, the year of planning and release has become a turning point, and Zhengzhou Nissan's sales volume has been declining year after year. In 2014, it fell to 111,000 units; in 2015, it sold 35,000 units, a sharp drop of 28.4% year-on-year; in 2016, it dropped to 26,000 units.
After the sales volume fell, the net profit of Zhengzhou Nissan was worrying. In 2015, it was its first loss for many years. The net loss was 180 million yuan. The loss in the following year was aggravated, and the net loss was 360 million yuan, which could not bring benefits to the holding company. Low overall returns are detrimental to shareholders' interests.
Through this asset and business adjustment, Dongfeng Limited will hold a 79.651% stake in Zhengzhou Nissan, which will be directly under the jurisdiction of the former. Dongfeng Limited holds a 60.10% stake in Dongfeng, so Zhengzhou Nissan and Dongfeng will change from “upper and lower†to “flatâ€.
In fact, this asset restructuring has long been a warning. In February last year, Dongfeng shares were suspended for two months, considering the sale of 51% equity of Zhengzhou Nissan to its controlling shareholder Dongfeng. Today, the two parties finally signed a transfer agreement. Zhengzhou Nissan said that it hopes that the equity adjustment will help it out of the loss.
Hanging Shoe Rack:
Hanging shoe rack is a home necessity that is used to store shoes for easy management. It takes up vertical space that can save more space than a regular shoe rack. You will not worry about all kind of your shoes in a mess. Now you can easily store and organize all your shoes, heels, sandals, and sneakers in one easy to access place. Compact-sized shoe rack maximizes minimal storage space.Simply place the over the door rack on the backside of any closet or storage door for access, storage, and organization of your favorite shoes. Also, it is easy to assemble and clean. Do not hesitate to buy one.
Hanging Shoe Rack,Hanging Shoe Storage,Plastic Shoe Rack
Xinhui Mingcheng Hardware Mamufacture Limited of Jiangmen City , https://www.gd-jmmc.com