NCFC(SH:600889) Ge Long Hui·2025-05-13 08:19Core Viewpoint - Nanjing Chemical Fiber announced a major asset restructuring plan, intending to acquire 100% equity of Nanjing Process Equipment Manufacturing Co., Ltd. through asset swaps, share issuance, and cash payments, with a total transaction value of approximately 1.607 billion yuan [1][3]. Group 1: Transaction Overview - The transaction involves three main components: significant asset swaps, issuance of shares, and cash payments for asset purchases, along with fundraising [4][5]. - Nanjing Chemical Fiber plans to swap all its assets and liabilities with an equivalent portion of the 52.98% shares held by New Industry Group in Nanjing Process [5][6]. - The company aims to issue shares to New Industry Group and 13 other entities to acquire the remaining 47.02% shares of Nanjing Process [5][6]. Group 2: Financial Details - The asset swap is valued at approximately 729.27 million yuan, while the assets to be acquired are valued at about 1.6067 billion yuan, resulting in a difference of 877 million yuan to be settled through share issuance and cash [4][5]. - Nanjing Chemical Fiber plans to raise up to 500 million yuan from no more than 35 specific investors, with New Industry Group committing to subscribe at least 10 million yuan [5][6]. Group 3: Business Transformation - Prior to the transaction, Nanjing Chemical Fiber's main business included the production and sale of viscose staple fiber and other products. Post-restructuring, the company will shift its focus to the research, development, production, and sales of rolling functional components [5][12]. - The restructuring is seen as a necessary step for the company to address its ongoing losses and to transition towards a more sustainable and high-end production model [12][13]. Group 4: Financial Performance - Nanjing Chemical Fiber has faced continuous operational challenges, with projected net losses of 177 million yuan, 185 million yuan, and 449 million yuan from 2022 to 2024, totaling over 800 million yuan in losses [7][8]. - The company reported a significant decline in revenue and net profit in the first quarter of 2025, with revenue down 31.24% year-on-year [9][10]. Group 5: Market Context - The viscose staple fiber market remains dominant, accounting for 96.17% of the market share in 2024, with a total production of 4.29 million tons [10]. - The industry is undergoing a transformation towards greener and more sustainable practices, driven by government policies and market demands [12].