NCFC(SH:600889) Jing Ji Guan Cha Wang·2025-05-13 08:18Core Viewpoint - Nanjing Chemical Fiber plans to acquire 100% of Nanjing Process Equipment Manufacturing Co., Ltd. through asset swaps, share issuance, and cash payments, aiming to transform its business focus from loss-making operations to the profitable rolling functional components sector [1][4][6] Group 1: Company Performance - Nanjing Chemical Fiber has faced continuous losses, with a total net loss of approximately 1.662 billion from 2018 to 2024, reflecting a decline in its main business due to economic slowdown and increased competition [2][3] - The company's Q1 2025 report showed a revenue of 73.13 million, down 31.24% year-on-year, and a net loss of 53.24 million, a 63.26% decline compared to the previous year [2] - Previous acquisitions, such as the 51.91% stake in Shanghai Yueke, resulted in significant losses, leading to a full impairment of goodwill amounting to 249 million in 2021 [2][3] Group 2: Acquisition Details - The acquisition plan includes an asset swap of all assets and liabilities of Nanjing Chemical Fiber with an equivalent portion of the 52.98% stake in Nanjing Process held by New Work Group, alongside issuing shares to acquire the remaining 47.02% [1][5] - Nanjing Process, established in 1952, specializes in rolling functional components and has shown stable revenue and profit growth, with projected revenues from 2025 to 2029 ranging from 475 million to 526 million and net profits from 53.23 million to 59.23 million [5][6] Group 3: Industry Outlook - The rolling functional components industry is crucial for various high-end manufacturing sectors, including CNC machine tools and semiconductor equipment, aligning with national innovation strategies and policies [6] - The restructuring aims to divest from the loss-making business and inject profitable assets into the company, establishing a solid foundation for future growth and maximizing shareholder value [6]