Brokeback Vico Essentials: textile business stripped and battery business got loss.

On May 28th, Vico Essentials (600152. SH) announced the process of transfering Ningbo Textile co., LTD, a subsidiary of Vico Essentials. On May 24th, 2018, Vico Essentials (600152. SH) will hold a wholly owned subsidiary of Ningbo Vico Essentials Cotton Textile Co., LTD. (hereinafter referred to as the "Vico Essentials ") 100% stake in the way to transfer funds from the sale. The company management layer multilateral research and market analysis judgment combined with the auction company, and the initial base price reference to evaluate base day on January 31, 2018 net assets assessment price discount, namely 134.03 million yuan.

The old-line textile enterprises after two years of losses began brokeback survival road, stripping the original assets, to lithium ion batteries research and development, manufacture and sales of transformation, but the road has just begun, will again be thwarted.

Into loss

As one of the largest home textile enterprise local Vico Essentials was having a difficult time in recent years. As of December 31, 2017, Vico Essentials  cotton total assets of 77.0864 million yuan, total liabilities of 9.2106 million yuan, net assets of 67.8758 million yuan.2017 operating income of 32.2083 million yuan, net income 13.5166 million yuan.

Results show that in 2017, the essence of Vico Essentials textile business revenues accounted for 23.05%;Textile business revenues fell 29.36% year on year, during the reporting period, Vico Essentials  essence home textile sector capacity in 1.5 million or so, equipment utilization rate of 60%;Clothing plate capacity is controlled in 1.5 million, equipment utilization rate of 50%;Printing and dyeing processing plate capacity at about 28 million meters, equipment utilization rate of 100%.

Vico Essentials  essence intensify textile industry adjustment and closure of stripping losses of assets, revitalize the profit business, from 2012 to 2017, the company shut down those enterprises with no hope of that disposal of machinery and equipment, reduce 6100 employees, cause short-term comprehensive cost rise; At the same time to avoid horizontal competition, performance of the company promises, company to spin out the real estate business and import and export business of listed companies.

Vico Essentials the plan announcement, stripped ofZhenjiang cotton textile was founded in 2004 on August 10, registered capital: 80 million yuan, business scope involves the production of yarn, thread, cloth, and form a complete set of finishing products; Sales produced products and the products produced in the process of manufacturing defects and waste; Textile equipment leasing, installation and technical advisory services. Vico Essentials  essence, Jiangsu province textile group co., LTD., KB are built, respectively held in Zhenjiang 75%, 18.75%, 6.25% cotton.

As of December 31, 2017, Zhenjiang cotton total assets of 55.9661 million yuan, total liabilities of 170 million yuan, net assets - 114 million yuan.2017 operating income of 12.1927 million yuan, net income 29.2318 million yuan. As of March 31, 2018, Zhenjiang cotton total assets of 54.6386 million yuan, total liabilities of 171 million yuan, net assets - 117 million yuan, 31 March 2018 to achieve the business income is 1.0763 million yuan, net profit to 2.6899 million yuan.

The transformation of frustration

Vico Essentials since 2016 the implementation of strategic transformation, the layout of the energy business, and in 2017 to complete the purchase of assets through issuing shares and raising matching funds and related party transactions, the company jointly held by way of direct and indirect Vico Essentials The battery stake of 100%, and owns a 100% stake in Vico Essentials new energy directly.

But the deal did not bring expected earnings Vico Essentials Essentials. At that time, Vico Essentials Essentials to the transaction price of about 800 million yuan by issuing shares to buy the company controlling shareholder Vico Essentials holdings, Yang Longyong and yao bao investment total owns a 71.4% stake in Vico Essentials  batteries, Vico Essentials  holdings owns a 60% stake in Vico Essentials  energy.Vico Essentials  battery 100% equity evaluation value of 914 million yuan, assess increment rate of 247.84%.

Acquisition, the dealing party promises Vico Essentials  battery of 2017-2019 after deducting non-recurring gains and losses attributable to the parent company net profit of not less than 50 million yuan and 70 million yuan respectively, 90 million yuan. According to the essence of Vico Essentials announcement, Vico Essentials battery is expected to produce 2017 net profit of about 59.97 million yuan, but because of Vico Essentials battery involved in litigation the receivable amount of 84.0999 million yuan, may lead to Vico Essentials cell loss of 24.13 million yuan, mainly from its customers Gionee communication and litigation.

Vico Essentials  batteries have to submit the complaint to Beilun Ningbo people's court, the defendant bye m LLT to Dongguan, Dongguan Jin Ming, Shenzhen Gionee communication equipment co., LTD. (hereinafter referred to as the "Gionee communication"), Shenzhen Gionee technology co., LTD. (hereinafter referred to as the "Gionee" science and technology) and Liu Lirong.

The Dongguan bye m LLT is a wholly owned subsidiary of Gionee communication, Gionee communication is Dongguan Jin Ming and Gionee's controlling shareholder, science and technology, which owns a 92% stake in Dongguan Jin Ming Gionee communication, owns a 95% stake in Gionee science and technology.Gionee communication, Dongguan Jin Ming and Gionee's legal representative, chairman, general manager of science and technology are all Liu Lirong. Since 2017 Gionee debt crisis continued fermentation, Gionee suppliers were involved, Jiang powder magnets, the Philippines equivalent of science and technology for Gionee supplier performance is affected by the large listed companies 2017.

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