Hainan Coconut Island (600238.CH/ 8.58, unrated) announced that it intends to sell two assets: wholly owned subsidiary Hainan Coconut Island Alcohol Industry Co., Ltd., and some assets of Jingzhou Jinchu Oil Technology Co., Ltd.
Assets to be sold:
1. Hainan Coconut Island Alcohol Industry Co., Ltd
1) founded in June 2002, the current registered capital is 31 million yuan, the sales income from January to June 2012 is 0, and the net profit is-265100 yuan. Since its establishment, the alcohol industry company has been in a state of closure and sustained losses from 2009 to 2011, with a cumulative loss of nearly 10 million yuan. As of June 30, the company's unevaluated net assets were about 4.8 million yuan, while it owed 19.48 million yuan to listed companies.
2) Sale: the company intends to sell at a price not lower than the assessed net asset value, while the transferee will repay the arrears. The deal is still uncertain.
two。 Jingchu Oil Technology Co., Ltd. 1) founded in 2007, Hainan Coconut Island is a joint venture company established when Hainan Coconut Island participated in the restructuring of Tianyi Technology. Hainan Coconut Island holds a 95% stake in it. After the establishment of the company, it lost 44.97 million yuan in 2008, and then leased its assets to China Textile Oil Management. Although it had rental income, it sustained losses from 2009 to 2011, with a cumulative loss of 20.14 million yuan in three years. From January to June 2012, the main income was 0 yuan and a loss of 2.87 million yuan. By the end of June, the net asset was-11.01 million yuan.
2) after tripartite consultation among Jingzhou Land purchase and Reserve Center, Jinchu Company and China Textile Oil Co., Ltd., the Jingzhou Land purchase and Reserve Center will collect and store 358.61 mu of land in the factory area of Jinchu Company (including the plant, machinery, equipment and buildings of Jinchu Company and other enterprises, of which machinery and equipment will be delivered to China Textile Oil Co., Ltd., and the China Textile Group will invest in the construction of grain and oil deep processing projects in Jingzhou. The asset evaluation has been completed, according to the business agreement, excluding the non-actual control and the auctioned area of 37.46mu, the proposed storage area is 321.14 mu), and pay 92 million yuan in compensation to Jinchu Company (including 5 million yuan for the value of other enterprise buildings in the factory area). Although the land acquisition and storage agreement has not yet been signed, the project is expected to proceed smoothly.
Asset liquidation helps to focus on the main business and reduce losses and improve the financial structure. Since 2011, the company has combed its assets and focused on the strategic intention of the main business. the company has successively taken specific measures, including the fading out of the starch industry with long-term losses or small profits, the replacement and clean-up of land assets, and the integration of alcohol assets. The proposed sale of all the shares of Hainan Coconut Island Alcohol Industry Co., Ltd. and the cooperation intention with Jingzhou Land purchase and Reserve Center can speed up the adjustment of the company's industrial structure and help concentrate resources to develop advantageous industries. at the same time, improve the company's financial structure, enhance the company's asset quality and profitability. Among them, the asset clean-up of Jingchu Oil Technology Company can not only reduce losses by millions of yuan a year, but also achieve an one-time income of about 48 million yuan.
Although the company's industry shrinks and the strategy of focusing on the main business is clearer than before, we should have a clear understanding of the problems existing in the company's ownership structure and system design, and the absence of top-level design is still an important factor restricting the company's rapid and sound development. We believe that if there is a major breakthrough in the company's ownership structure and corporate governance, new and greater changes will take place in the company's fundamentals, and the current asset liquidation work done by the company may be a favorable preparation for the change of the company's ownership structure.
