NBHX(SZ:002048) Xin Lang Cai Jing·2025-04-14 07:18Core Viewpoint - Ningbo Huaxiang plans to sell 100% equity of six subsidiaries in Germany, Romania, and the UK for 1 euro, which is expected to result in a one-time net profit reduction of 900-1,000 million yuan in 2025 [1][3] Financial Performance - In 2024, Ningbo Huaxiang reported total revenue of 26.063 billion yuan, an increase of 11.94% year-on-year, while net profit attributable to shareholders was 909 million yuan, a decrease of 11.83% [2] - The company has incurred significant losses from its European operations, with cumulative losses exceeding 1 billion yuan since 2014, including losses of 243 million yuan and 385 million yuan in 2023 and 2024, respectively [1][2] Strategic Decisions - The decision to divest European operations is seen as a move to optimize resource allocation and enhance long-term investment value, despite incurring a guarantee debt release cost of approximately 211 million yuan [1] - The company previously made significant acquisitions in Europe, including a 18.7 million euro purchase of Sellner and a 34.2 million euro acquisition of HIB, but has since faced strategic missteps and governance issues [1][2][3] Market Perception - The sale of European assets is perceived as a desperate measure that highlights strategic errors in cross-border mergers and internal governance flaws [3] - There are concerns regarding potential related-party transactions, as the company repurchased shares from its major shareholder at a significant markup, raising questions about the integrity of its asset management [2] Future Outlook - The company's ability to leverage the new energy benefits from its core assets remains uncertain, and its success will depend on its integration capabilities and management of industry cycle risks [4]