Promoting mergers and acquisitions
Posted: Mon Feb 10, 2025 11:30 am
The space for increasing product gross profit margins due to large customized orders is limited; the price of the main raw material natural gas has increased slightly, and at the same time, the increase in workers' wages has increased product costs.
In recent years, Songfa’s performance has continued to decline, and in 2021 it turned directly from profit to loss, with a net profit loss of 309 million yuan, directly wiping out the profits accumulated in previous years.
In the following years of 2022 and 2023, Songfa Co., Ltd. continued to lose 171 million yuan and 117 million yuan respectively.
In the first three quarters of last year, Songfa Group achieved revenue of 181 million yuan, a year-on-year increase of 16.44%; net profit was -60.31 million yuan, a year-on-year increase of 4.97%.
Based on this calculation, Songfa Group expected to investor data achieve revenue of 73 million yuan to 114 million yuan in the fourth quarter of last year, and net profit attributable to the parent company of -26.69 million yuan to -1.94 million yuan.
With continuous losses in performance, Songfa shares urgently need a turnaround.
On October 1, 2024, Songfa Group announced that it plans to acquire 100% of the equity of Hengli Heavy Industries, which is expected to constitute a major asset reorganization.
It is reported that the controlling shareholders of Songfa Holdings and Hengli Heavy Industries are both Hengli Group Co., Ltd., and Hengli Heavy Industries' main business is the research and development, production and sales of ships and high-end equipment .
After the transaction is completed, Songfa’s main business will change from the original ceramic products to shipbuilding industry, making it the first A-share private shipbuilding stock.
It should be noted that in this transaction, Songfa shares need to add 893 million shares of share capital, and the total share capital after the reorganization will become 1.017 billion shares. Based on the latest share price of 40.4 yuan per share, the total market value of Songfa shares after the reorganization will exceed 40 billion yuan.
In recent years, Songfa’s performance has continued to decline, and in 2021 it turned directly from profit to loss, with a net profit loss of 309 million yuan, directly wiping out the profits accumulated in previous years.
In the following years of 2022 and 2023, Songfa Co., Ltd. continued to lose 171 million yuan and 117 million yuan respectively.
In the first three quarters of last year, Songfa Group achieved revenue of 181 million yuan, a year-on-year increase of 16.44%; net profit was -60.31 million yuan, a year-on-year increase of 4.97%.
Based on this calculation, Songfa Group expected to investor data achieve revenue of 73 million yuan to 114 million yuan in the fourth quarter of last year, and net profit attributable to the parent company of -26.69 million yuan to -1.94 million yuan.
With continuous losses in performance, Songfa shares urgently need a turnaround.
On October 1, 2024, Songfa Group announced that it plans to acquire 100% of the equity of Hengli Heavy Industries, which is expected to constitute a major asset reorganization.
It is reported that the controlling shareholders of Songfa Holdings and Hengli Heavy Industries are both Hengli Group Co., Ltd., and Hengli Heavy Industries' main business is the research and development, production and sales of ships and high-end equipment .
After the transaction is completed, Songfa’s main business will change from the original ceramic products to shipbuilding industry, making it the first A-share private shipbuilding stock.
It should be noted that in this transaction, Songfa shares need to add 893 million shares of share capital, and the total share capital after the reorganization will become 1.017 billion shares. Based on the latest share price of 40.4 yuan per share, the total market value of Songfa shares after the reorganization will exceed 40 billion yuan.