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Xiamen Xiangyu Co., Ltd.: Progress on Debt Assignment with Optimization of Company Asset Structure
On the evening of Nov.29, Xiamen Xiangyu Co., Ltd. (stock code: 600057.SH) announced that its majority shareholder, Xiangyu Group, plans to fully acquire the outstanding debt claims held by the Company against Jiangsu Delong and its subsidiaries. The agreed transaction value amounts to 8.97 billion yuan.As of July 31, 2024, the outstanding balance of the company's debt claims against Jiangsu Delong was recorded at 8.97 billion yuan, with its assessed value being the same amount. Notably, as of the said date, with the market value of the collateral corresponding to these claims being in excess of the book value of the claims, the book value was adopted as the basis for the debt assessment. In accordance with the debt transfer agreement, the acquisition payment will be disbursed in three installments, and the payment terms structured subsequent to the effective date of the agreement. The announcement further emphasizes that the debt transfer is in line with the Company’s continuous endeavors to optimize its asset structure andthis move will effectively safeguard the interests of the Company as well as all its shareholders, while not imposing a significant adverse impact on the Company’s operations, management, or financial position. Furthermore, Xiamen Xiangyu simultaneously released three announcements. Specifically, the first one was regarding the withdrawal of its participation in the investment in Zhongwang Group’s aluminum core assets and other restructured assets. The second one pertained to the appointment of a new chairman and legal representative. And the third one was regarding the approval granted by the Shanghai Stock Exchange for the application of private placement of stocks.Xiamen Xiangyu announced that, upon meticulous consideration of the feedback from relevant stakeholders and the subsequent revision of its investment and financing plans in accordance with the latest update, the Board of Directors has reached a resolution to call off the planned investment. It is worth noting that Xiangyu Group will persist in serving as the restructuring investor, acquiring and holding a controlling stake in the newly established Zhongwang Group, which will be structured around the aluminum core assets of the original Zhongwang Group.Xiangyu Group is further broadening its presence in the aluminum manufacturing industry. In the wake of the restructuring, the newly established Zhongwang Group could foster more industrial synergies and business collaborations with Xiamen Xiangyu. There is a strong potential for it to evolve into a new growth driver for the listed company within the aluminum supply chain.Regarding the stock private placement of Xiamen Xiangyu, its targeted investors are China Merchants Group, Shandong Port Group and Xiangyu Group. It intends to raise funds amounting to 3.22 billion yuan, which will be used to replenish working capital and repay debts. This can better meet the needs of daily capital turnover, strengthen the company's capital strength, enhance its ability to resist risks, and reduce financial risks and operational risks.By introducing China Merchants Group and Shandong Port Group as strategic investors, Xiamen Xiangyu can achieve complementary advantages. Through deepening the strategic cooperation between the two sides, mutual benefits and win-win cooperation can be achieved.Xiamen Xiangyu stands as a prominent leader in the realm of bulk supply chain services, with its primary focus on catering to manufacturing enterprises. The Company is dedicated to delivering comprehensive and integrated supply chain solutions that span a wide range of aspects,including the procurement of bulk raw materials, the distribution of finished products, logistics services, as well as information consulting.In its 2024 semi-annual report, the Company conceded that its operating performance has been affected as early as 2023. Nevertheless, it laid particular emphasis on the fact that its business model, centered around catering to manufacturing clients, has manifested strong self-correction capabilities and resilience in maintaining long-term development.Against the backdrop of the intensification of government macroeconomic controls and within a more stable and positive macroeconomic environment, Xiamen Xiangyu remains its confidence that, by continuously optimizing its product mix, customer base, and business portfolio, in conjunction with strengthening risk management, it will be able to navigate developmental bottlenecks and industry cyclicality, stabilize its business fundamentals, and revert to a path of of high-quality growth.02/12/2024 Dissemination of a Financial Press Release, transmitted by EQS News.The issuer is solely responsible for the content of this announcement.Media archive at www.todayir.comEQS
Dec 2, 2024
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