① Red Cotton Co., Ltd. revealed its 2023 results tonight. It is expected to turn a year-on-year loss into a profit. This is also the first annual report card of Guangzhou Langqi after going through asset restructuring and name change. ② The capital market is very concerned about the future growth of its food and beverage business.
Financial Services Association, January 22 (Reporter Ren Chaoyu) Cotton Co., Ltd. (000523.SZ) revealed its 2023 performance forecast tonight, which is expected to turn a year-on-year loss into a profit. This is also the first annual report card of Guangzhou Langqi after going through asset restructuring and name change.
Currently, the performance of Red Cotton shares has improved significantly compared to last year. According to the announcement, the net profit of Hongmian shares is estimated to be 53.5 million yuan to 80 million yuan, and net profit after deduction is estimated to be between 30 million yuan and 45 million yuan. However, the same period last year was in a state of loss.
Hongmian Co., Ltd. said that during the reporting period, the overall development of the company's food and beverage sector was steady. The rental revenue of the subsidiary Guangzhou Xinshicheng Enterprise Development Co., Ltd. increased significantly compared to the same period last year.
After the asset restructuring, Hongmian Co., Ltd. ceased operating the daily chemical business and transformed into a food, beverage, and cultural and creative industrial park development and operation. The company name “Red Cotton” is a registered trademark of Huatang Foods, a wholly-owned subsidiary.
According to the official website of Huatang Food, it was formerly known as Guangzhou Huaqiao Sugar Factory and was founded in 1955. The main products include foods such as the Cotton Cotton series edible sugar, Guang's Pineapple Beer series drinks, and Oriental Fables series coffee, etc., with annual main business revenue exceeding 1.5 billion yuan.
In addition, Red Cotton Co., Ltd. is planning to acquire another food company under Guangzhou Light Industry Group, the controlling shareholder.
On January 13, Red Cotton Co., Ltd. announced that it intends to purchase 100% of the shares of Guangzhou Yingqian Food Group Co., Ltd., a wholly-owned subsidiary of the Light Industry Group, through cash. Eagle Money's main products include canned food, cookies, alcohol and beverages.
In response to investors today, the company said, “This asset restructuring is still in the preliminary planning stage, and there is uncertainty about the specific transaction plan.”
The operating entity of Hongmian Co., Ltd.'s cultural and creative industrial park development and operation business is the subsidiary Xinshicheng. According to relevant announcements, Guangzhou Light Industry Group and Red Cotton Co., Ltd. have signed a “Performance Compensation Agreement”, agreeing that Xinshicheng's net profit for 2023-2025 will not be less than 59.903 million yuan, 73.951 million yuan, and 79.873 million yuan, respectively.