Shanghai Textile Group and Oriental International "Flash Wedding"

â– Reporter

After the Shanghai State-owned Assets Supervision and Administration Commission decided to implement a joint restructuring of Shanghai Textile Group (hereinafter referred to as Textile Group) and Oriental International (Group) Co., Ltd. (hereinafter referred to as: Oriental International), the reform and restructuring of Shanghai state-owned enterprises entered another climax.

According to industry insiders, the Securities Daily reporter said: "Textile Group and Oriental International are the top groups in the textile and garment import and export ranks. After the reorganization and merger of the two groups, they will become the top 100 Chinese garment export enterprises. First place."

State-owned enterprise reform achievements textile export chief

The leading shares of the Textile Group, Shenda and Dongfang International’s Oriental Entrepreneurship also announced that they received the notice from the Shanghai State-owned Assets Supervision and Administration Commission forwarded by the company’s major shareholder to further optimize the layout of the state-owned assets, promote the innovation and transformation of enterprises, and give full play to Shanghai State-owned Enterprises played a role in the construction of the “One Belt, One Road” and Shanghai International Trade Center. The Shanghai State-owned Assets Supervision and Administration Commission decided to implement a joint restructuring of Textile Group and Oriental International (Group) Co., Ltd., and to 27.33% of the shares of the Textile Group held by the Shanghai State-owned Assets Supervision and Administration Commission. 49% of the textile group held by Shanghai Guosheng (Group) Co., Ltd. was transferred to Oriental International with the audited net asset value. The base date for equity transfer is December 31, 2016.

For this restructuring, some analysts said that it was a reorganization of Oriental International's “snacks”.

The data shows that Oriental International was established on November 18, 1994, with a registered capital of 800 million yuan. It was originally developed by Shanghai Foreign Trade System, "Five Golden Flowers", namely silk, clothing, textile, knitting and home textiles. The state-owned sole proprietorship company formed by the company.

According to the official website of the Securities Daily, the textile group had total assets of 36.92 billion yuan, net assets of 13.78 billion yuan and liabilities of 23.135 billion yuan. There are 22,000 employees and 234 affiliated companies. The listed companies include Shenda and the leading companies. The latest assets of Dongfang International are 15.21 billion yuan, net assets of 8.314 billion yuan and liabilities of 6.896 billion yuan.

From the above data, Eastern International's total assets and net assets are much smaller than those of the textile group. However, from the perspective of the profit of the two groups, the asset scale is much smaller than that of the textile group, but the net profit of Oriental International is higher than that of the textile group.

Data show that in 2016, the textile group achieved operating income of 54.182 billion yuan, an increase of 17.6%, while Oriental International only 22.7 billion yuan, an increase of 4.8%. However, although the textile group's operating income is much higher than that of Oriental International, the net profit of the textile group is lower than that of Oriental International.

In terms of net profit, the textile company's net profit in 2016 was 663 million yuan, a year-on-year increase of 23%. In the 2016, the net profit of Orient International was as high as 800 million yuan, an increase of 121% over the previous year. At the same time, the proportion of the main business profit of the group in the total profit of the year was also raised from 40% in the previous year to 80%. about.

For the reorganization of the above two groups, Yang Jianwen, executive vice president of the Shanghai State-owned Capital Operation Research Institute, said in an interview with the media that the textile group has textile business and trade, while the Eastern International focuses on trade and investment. Industry reinforcement, enhancing international influence and voice.

It is worth noting that some insiders revealed to the "Securities Daily" reporter that the merger of the two textile groups will mean that the top 100 Chinese textile and apparel export companies have changed. If the export data for 2016 is taken as an example, the combined export value of the two textile groups will exceed the export value of the first Jiangsu Guotai International Group Co., Ltd.

According to the "Securities Daily" reporter's review of "2016 China's Top 100 Textile and Apparel Export Enterprises", in 2016, Jiangsu Guotai International Group Co., Ltd. ranked first in the list of China's textile and apparel export enterprises with an export value of 2.769 billion US dollars. The textile group ranked second with an export value of US$2.61 billion. In addition, Guangdong Silk Textile Group Co., Ltd. ranked third with exports of US$1.563 billion; the fourth was Oriental International, whose 2016 export value was 13.06. One hundred million U.S. dollars.

The above-mentioned insiders told the "Securities Daily" reporter that if the two groups are reorganized, they may become the first among China's textile and garment export enterprises without major changes in foreign trade.

In addition, the "Securities Daily" reporter also learned that in the "2016 China Textile Export Top 100" list released in June 2017, the textile group topped the list with an export value of 771 million US dollars.

The overall listing strategy has changed

It is understood that the textile group's business is mainly divided into two major segments of textiles and trade. Its assets and business scale are huge, and its land resources are abundant. The Shanghai Textile Group has two major listed company platforms, Shenda and the leading shares. In the business structure, Shenda is mainly engaged in textile import and export, automotive interiors and new materials. The leading shares are mainly engaged in textile brand management, fabric management and international trade business. Compared with Shenda shares, it is more focused on urban fashion and has rich Own clothing home textile brand (three guns, Minguang, etc.).

Some insiders believe that among the state-owned enterprises in Shanghai, the textile group is the representative of the textile and garment industry, and the reform of state-owned enterprises that is in full swing is improving the system and mechanism constraints to a certain extent, and the short-term is conducive to improving the profitability of potential state-owned assets. Conducive to industry mergers and acquisitions integration and transformation and innovation, while the textile and garment industry is a competitive industry, Shanghai Textile Group will inevitably benefit from the efficiency improvement and valuation of the state-owned enterprise reform.

However, after the news of the restructuring of Textile Group and Eastern International, some insiders analyzed the report of Securities Daily: "Before, in the interpretation of the reform of state-owned enterprises in Shanghai, the market speculated that the textile group would rely on the listed company as a whole. Listing. However, after the news of the restructuring of the two groups, the overall listing strategy of the group is estimated to change."

It is understood that Oriental International has only one listing platform for Oriental Entrepreneurship. In March 2011, the Group completed the major asset restructuring of the core assets of the main businesses of the textile, Litai (original knitting), home textile, commercial, Dongsong and logistics subsidiaries into the listed company, and began to promote the overall listing process.

While the listed companies under the Textile Group have been regarded as the overall listed stocks by the industry, the group's asset securitization rate is less than 30%.

Judging from the main business involved in the three listed companies of the two groups, Dongfang International's listed company Oriental Ventures is a comprehensive listed company that combines goods trade and modern logistics, combining industrial operations and capital operations, with clothing, Textile exports are the mainstay.

The leading shares of listed companies under the Textile Group are based on textile brand management and international trade. The company has “three guns”, “Chrysanthemum”, “Conch”, “Minguang” and “Phoenix” which are well-known in the domestic market. "Other famous brands."

The predecessor of Shenda, which belongs to the textile group, was founded in 1986 by Shanghai Shenda Textile & Garment (Group) Co., Ltd., which is a cotton textile, printing and dyeing, clothing, tape, industrial textiles, automobile decoration, domestic and foreign trade, real estate, etc. A comprehensive company in a variety of business areas.

Some insiders analyzed the "Securities Daily" reporter: "The restructuring of the two groups has strong superpositions and short-board complementarities. The superimposed import and export business, brand building and real estate resources operate, complementing foreign trade and domestic trade (industrial). , trade and logistics, and real estate resources and financial assets."