On March 18, China Belief Electric (600517.SH) announced that it was planning major asset restructuring. China Networks UK International Holdings Limited (hereinafter referred to as China Networks UK) intends to restructure its assets with the company through trust, securities and futures business related assets. The company intends to purchase UK owned by China Networks UK through issuing shares. Great International Trust Co., Ltd. (hereinafter referred to as British Trust) equity and British Securities Co., Ltd. (hereinafter referred to as British Securities) equity and other assets, and raise supporting funds. British Securities and British Trust will be listed on curve A shares.
At present, Confidence Electric has only issued a suspension plan. The aforementioned assets restructuring has not yet signed a formal transaction agreement, and the specific transaction plan is still under discussion. The company will be suspended from March 18, 2019.
According to the suspension plan, the company is a wholly-owned subsidiary of the State Grid Co., Ltd. with registered capital of 31.535 billion yuan.
On March 15, Belief Electric signed the Intentional Agreement for Restructuring with China Networks UK. The main contents are as follows:
(1) The company intends to restructure its assets with assets related to trust, securities and futures business.
Preliminary consideration, the restructuring targets involved include the ownership of the British International Trust Company Limited and the British Securities Company Limited.
(2) The company purchases the above-mentioned underlying assets by issuing shares to the National Networks UK, etc. The final transaction price of the underlying assets shall be based on the evaluation values listed in the Asset Evaluation Report issued by the qualified appraisal institutions and examined and filed by the State-owned Assets Supervision and Administration Commission of the State Council, which shall be determined through consultation between the two parties.
(3) Both sides will make every effort to promote the related work of asset reorganization, determine the final reorganization target and transaction mode based on due diligence, audit evaluation, business negotiation, internal and external approval, and sign the reorganization framework agreement as soon as possible.
According to the data, the company was founded on December 20, 2010. Its members include parent company, China Electric Power Finance Co., Ltd., Yingtai and Property Insurance Co., Ltd., Yingtai and Life Insurance Co., Ltd., British International Trust Co., Ltd., Yingda Securities Co., Ltd., and Yingda Long-term Security Insurance Co. Brokerage Co., Ltd., British Futures Co., Ltd. and other eight enterprises, covering the banking, insurance, securities, asset management and other four major sectors.
Belief Electric is mainly engaged in low-carbon energy-saving, low-voltage electrical and new materials primary equipment, power grid intelligent operation and maintenance system and equipment, power engineering and energy-saving services related research and development, production, sales and technical services. The company's largest shareholder is State Grid Electric Power Research Institute Limited, and the actual controller is the State Assets Supervision and Administration Commission of the State Council.
As of September 30, 2018, Belief Electric's operating income was 2.849 billion yuan, and its net profit attributable to the shareholders of the parent company was 150 million yuan. Interface journalists note that Belief Electric's operating income and net profit have declined steadily since 2017.
According to its latest performance forecast for 2018, it expects net profit attributable to shareholders of listed companies to be reduced by 209 million yuan to 229 million yuan, down 87% to 96% year on year. After deducting recurring gains and losses, the net profit attributable to shareholders of Listed Companies in 2018 will be reduced by 171 million yuan to 191 million yuan compared with the same period last year, down 118% to 132% compared with the same period last year.
Confidence Electric achieved a net profit of 239 million yuan in 2017, which means that its net profit in 2018 is about 0.3 billion to 0.11 billion, and it is on the verge of loss.
Confidence Electric closed at 481 yuan on March 15, the last trading day, up 2.78%, with the latest market value of 6.523 billion yuan.
Confidence Electric said that in 2018, profit margins declined due to the macro-environmental impact of the country, changes in the company's income structure and rising prices of major raw materials. In addition, the cost of liquidation and closure of Chongqing East Asia Group Transformer Co., Ltd., a holding subsidiary, is relatively high. During the same period last year, the old factory of Chongqing East Asia Group Transformer Co., Ltd. has a larger income from relocation and disposal of assets.
Previously, many comprehensive central enterprises injected financial sector into listed companies, such as Minmetals Group, Minmetals Trust, Minmetals Securities, etc. into Jinrui Science and Technology, and transformed into Minmetals Capital (600390.SH); China Aviation Industry injected * ST North Asia into China Aviation Trust, China Aviation Securities, etc., into China Aviation Capital (600705.SH).