值得注意的是，继峰股份将为此次交易承担巨额的财务损失。公告显示，此次出售TMD公司将对继峰股份本年度业绩造成重大影响，据公司初步核算，预计亏损2.8亿至3.8亿元人民币（下同）。财务数据显示，今年上半年继峰股份净利仅5314.45万元。Although this move is beneficial for Ningbo Jifeng Auto Parts to focus on its core business development, the huge losses it may bring could cast a shadow over the company's performance this year. Ningbo Jifeng Auto Parts stated that the sale of TMD company is mainly because its products have weak synergies with the company's other products. However, Grammer has stated that the acquisition of TMD company can greatly expand its product portfolio and technological capabilities in the thermoplastic application field.
According to Caixin, on September 22nd, after 5 years of acquisition and entering the profit stage, Grammer took a step of "selling cheap" assets. Although divesting non-core assets is beneficial for Ningbo Jifeng Auto Parts to focus on its core business development, the huge losses it brings may cast a shadow over the performance of this automotive parts leader this year.
This evening, Ningbo Jifeng Auto Parts announced that due to the weak synergies between Toledo Molding & Die Company (referred to as "TMD Company") and other products of the company, its holding subsidiary Grammer intends to sell 100% equity of TMD company to APC company at an initial transaction price of 40 million US dollars. The purpose of this move is to focus on the core business and enhance Grammer's profitability in the Americas region.
It is worth noting that Ningbo Jifeng Auto Parts will bear a huge financial loss for this transaction. The announcement shows that the sale of TMD company will have a significant impact on the performance of Ningbo Jifeng Auto Parts this year. According to the company's preliminary accounting, it is expected to incur a loss of 280 million to 380 million yuan. Financial data shows that in the first half of this year, Ningbo Jifeng Auto Parts had a net income of only 53.1445 million yuan.
Ningbo Jifeng Auto Parts stated that although selling TMD company will have a significant impact on the current profit and loss statement of the company and Grammer, it also increases Grammer's one-time cash inflow, which is beneficial to improving Grammer's cash flow. After the delivery is completed, it reduces the company's further strategic resource investment in TMD, and also improves the profitability and financial condition of Grammer in the Americas region, thereby enhancing the overall profitability of the company.
TMD company is a wholly-owned subsidiary of Grammer, and its main business includes designing, manufacturing, and selling injection and blow molds, designing, manufacturing, and selling automotive and custom plastic molding components, as well as sequencing and assembly of air handling, cooling, interior trim, and cockpit modules. Financial data shows that as of August 31, 2024, TMD company's total assets were 894 million yuan, with a net asset of 503 million yuan. In the first 8 months of this year, the company achieved revenue of 1.184 billion yuan, with a net loss of 134 million yuan and a non-GAAP net loss of 136 million yuan.
In October 2018, German automotive supplier Grammer acquired 100% equity of TMD company for 271 million US dollars. Ningbo Jifeng Auto Parts disclosed in previous announcements that through the acquisition of TMD company, Grammer can expand its product portfolio and technological capabilities in the thermoplastic application field, and have access to new products that can enhance its profit potential based on sustainability, thereby helping Grammer achieve its profit target. In addition, the acquisition can enhance Grammer's market position in North America and establish connections with its US customers.
In 2019, Ningbo Jifeng Auto Parts completed the acquisition of 84.23% equity of century-old automotive interior giant Grammer for 3.956 billion yuan, and TMD company has been included in the consolidated financial statements of Ningbo Jifeng Auto Parts. According to public information, starting from January 2020, Ningbo Jifeng integrated four US companies, TMDWEK, TMD Tennessee, TMD Wisconsin, and TMDWEK North, into TMD company.
It is worth mentioning that this acquisition brought Ningbo Jifeng Auto Parts 2.821 billion yuan in goodwill. As of the end of the first half of this year, Ningbo Jifeng Auto Parts still has 1.716 billion yuan in goodwill. In 2022, Grammer recorded an impairment loss of 1.009 billion yuan for goodwill.
On the other hand, since the completion of the acquisition, Grammer's contribution to the performance of Ningbo Jifeng Auto Parts has been unsatisfactory. Ningbo Jifeng Auto Parts explained that Grammer is in an integration period. In 2023, Ningbo Jifeng Auto Parts appointed Li Guoqiang as the global COO of Grammer. In that year, Grammer achieved a net income of 0.022 billion yuan, turning the loss into a profit on a year-on-year basis.
In early 2024, Ningbo Jifeng Auto Parts stated that the integration of Grammer has entered the fast lane, aiming to accelerate the realization of the 'profitability first' goal. However, in the first half of this year, Grammer once again reported a loss of 0.035 billion yuan.
As a result of this, Ningbo Jifeng Auto Parts experienced an increase in revenue but not in profit in the first half of the year, with a year-on-year revenue growth of 5.47% to 11.006 billion yuan, but a year-on-year net income decrease of 35.54%. One month after the semi-annual report was released, Ningbo Jifeng Auto Parts decided to abandon TMD, which has been severely loss-making this year.
