On February 2nd, Shanghai Shuangqin Group Co., Ltd. (hereinafter referred to as Shuangqin Shares) announced that Michelin Financial Co., Ltd. acquired 161 million yuan worth of equity transactions in Shanghai and won the joint venture Shanghai Michelin Huali Tire Co., Ltd. (under Shanghai Michelin refers to 28.49% of the shares.
Shuang Qiang Securities Securities Affairs said in an interview with reporters: “Shanghai Michelin’s loss year after year has caused great pressure on the performance of Shuangqin’s shares. Due to the company’s profitability requirements, the board of directors and the shareholders’ meeting passed the decision to sell Shanghai Michelin.â€
Shanghai Michelin’s losses have been consistently questioned in the industry, and people in the industry generally believe that Michelin’s losses have been intentional. However, the Chinese Ministry of Communication in Michelin stated that deliberately making a loss is an unfounded assumption.
8 years cumulative loss of 1 billion
Prior to this, Michelin (China) Investment Co., Ltd. held a Shanghai Michelin company with a ratio of 25.78%, Michelin Finance Co., Ltd. held a stock ratio of 44.15%, Lee Avenue Co., Ltd. had a stock ratio of 0.07%, and Michelin completed its acquisition. Increased to 99.93%, Michelin completed the Shenyang City after the sole capitalization of the next city.
The Shuangqin Shares Announcement stated that after the Shanghai Michelin Corporation was established, it suffered losses year after year. In 2006, 2007, 2008, and the first half of 2009, the revenues were 1.59 billion yuan, 1.54 billion yuan, 1.54 billion yuan, and 590 million yuan, respectively. It is worth 67.48 million yuan, 80.86 million yuan, 95.25 million yuan and 88.9 million yuan. In addition to the amount of losses in previous years, cumulative losses have been nearly 1 billion in the past 8 years.
The relevant person of the Double Money Shares told reporters: "Since the Double Money shares are only participating in the Michelin Company and have not participated in the business decision, the reason for the loss is unclear, but the financial report that the Shanghai Michelin Company gives to the Double Money Shares every year is indeed a loss. â€
Some financial figures also pointed out that the company’s operating costs are too high. In 2006, 2007, and 2008, Shanghai Michelin’s costs were 1.46 billion yuan, 1.4 billion yuan, and 1.56 billion yuan.
In July last year, after the Shuangqin Shareholders' General Meeting passed the sale of the Shanghai Michelin Company, the Shanghai Michelin Company achieved its first-ever profit for the first time in four years. According to the listed data, in August 2009, Shanghai Michelin's operating income was 120 million yuan, operating profit was 6.88 million yuan, and net profit was 10.14 million yuan.
Dongwei Securities researcher Wang Weigang believes: “The mismatch between Michelin’s sales and performance in the country has caused many people in the industry to understand it. The industry’s general view is that some overseas companies have the idea of ​​acquiring domestic companies and deliberately losing money in order to achieve their suppression. Domestic brands gradually swallow up the domestic tire market."
In response, Michelin China responded: “The company is optimistic about the development of Shanghai Michelin, so the initial investment is relatively large. It has invested 200 million US dollars for production upgrades, and the cost recovery cycle is relatively long.â€
The double-money shares' evaluation of the profitability of Shanghai Michelin is also rather vague: “Since Shanghai Michelin’s main business is difficult to profit, it does not have the conditions for using the income method to assess, and after analysis, it believes that this company’s valuation should not use the income method. Assessment."
Sino-foreign relations do not
The Shanghai Michelin Company was once one of the most profitable companies under the Double Money Group, and it has now become a “oil bottle†that has dragged down the performance of the Double Money Group.
As the earliest tire giant to enter China, Michelin set up Shanghai Michelin Warrior Tyre Co., Ltd. with Shuangqin shares in 2001. Michelin bought assets of the Pulley tire factory for US$170 million. After the acquisition, Michelin has the right to operate.
The cooperation between Michelin and Shuangqian shares was seen as a strong combination in the industry, but after Shanghai Michelin entered Michelin, its performance was unsatisfactory.
Michelin answered the reporters that in the past eight years, Michelin has brought the industry and the best technology for the company to achieve its sustainable development in Shanghai, and has increased its production capacity and performance. Michelin has invested a total of 200 million U.S. dollars for factory upgrading. Since 2002, the company’s turnover has increased by 98% and its annual growth rate has reached 12%.
Since Shanghai Michelin's previous stage of investment was too large and the profit time was pushed back, there is no doubt that the Shanghai Miqilin Company, which was heavily invested in the previous period, had profitability. The industry believes that the main reason for the separation of Chinese and foreign shareholders is that the relationship is not harmonious.
After the completion of the transaction, Shuangqin shares will continue to license Shanghai Michelin’s exclusive use rights in the tire business of passenger cars and light trucks within two years. After the expiration of two years, the license is terminated, and the company enjoys all its own rights to use and license others. .
Shuangqian Group lost 1.47 billion yuan in 2008. After the sale of Shanghai Michelin Company, it was able to obtain 161 million yuan in revenue, and also wrote off a number of its loss-making tire manufacturing enterprises.
Precision Investment Casting,Cast Parts,Stainless Steel Investment Casting ,Stainless Steel Precision Casting
GUANGDONG INWIN INDUSTRIAL GROUP CO. ,LTD. , https://www.inwin1979.com