subject: Loss Of 5 Million Sale Of Zhongshan International Toys - China Arm Splint - China First Aid Splints [print this page] Hutchison Harbour Ring notice that the toy manufacturing business challenges, to sell the remaining toy manufacturing company found the company and its shareholders best interests.
Loss of 5 million sale of Zhongshan International Toys
Hutchison Harbour Ring back after the announcement on the HKEx released early last year, Hutchison Harbour Ring that Zeng Yi sell more in a similar manner, Dongguan crown disposed of under the control of another toy company.
December 21, 2007, Hutchison Harbour Ring announcement that, nearly 15 million yuan will be the price of the sale to MaxPeaceIndustrialLimited Grindleford they hold 81% stake in Hutchison Harbour Ring Grindleford total equity will decline to 19% . And this transaction, HHR own estimates, but also loss of nearly 500 million, as of December 31, 2006, Grindleford total assets of nearly 2000 million.
Information, Grindleford major asset for the Zhongshan International Toys Ltd (Zhongshan International Toys), 2005 and 2006 profit of 4.8 million yuan, respectively, 4.2 million yuan. As of December 31, 2006, Zhongshan International Toys nearly 27.5 million Hong Kong dollar assets. Toys Zhongshan International was established in 1989, the initial investment of nearly 100 million yuan, covers an area of more than 70,000 square meters.
Toy OEM twilight
Two transactions, and why are Orimoto HHR price transactions, financial weekly newspaper reporter this link and Hutchison Harbour Ring PR Wujia Wen, who did not make a positive response.
Money Weekly reporter has learned, and the HHR's toy business based primarily in the OEM, sold in Dongguan and Zhongshan crown more international processing and manufacturing toys are toys, not their own independent brands, profit comes mainly from processing fees income.
However, in recent years, mainly those with OEM manufacturing of toys, and constantly subject to rising labor costs and raw material weight. Entered into force in January this year "Labor Contract Law," so companies can not arbitrarily dismiss a staff member, "now the workers were mainly Yi 80 Hounianqingren Wei Zhu, this generation Bi Jiaonan control of, a little overtime on Duhui more great views of Zhe Liang employment costs in more than before. "Dongguan another OEM business owner told reporters.
Not only direct production costs, but also appreciation of the renminbi and the manufacturers cost of the test are rising. Hong Kong Trade Development Council, according to a survey produced by Hong Kong businessmen in the mainland, its production cost to some of the RMB clearing an average of 30%, 10% appreciation against the dollar, means that factors in other costs, production costs also Shangsheng 2% to 4.5%. In addition, affected by last year's toy recalls, manufacturers have to spend more money invested in testing, logistics, procurement and quality control. Increasing costs, so as to generation of process-oriented, "the more they Dongguan Crown" Profit is growing thin, in fact, according to Xinhua News Agency reported earlier, the first 7 months of this year, China has more than 3,600 toys factory closure only about 3,500 toy factories remained in production.
Perhaps, Li Ka Shing "or cheap" in Dongguan and Zhongshan International Toys crown more, in fact, Hutchison Harbour Lu Mingzhi the winter move, according to two notices, two items for sale and Hutchison Harbour Ring to bring at least 56 million Hong Kong dollars in cash flow .
Transactions from the two methods almost identical terms, do not rule out HHR bad assets through the capital operation of the stripping potential. Hutchison Harbour Ring the past year, shares of 0.8 Hong Kong dollars in the following run, the latest offer has been less than 0.5 Hong Kong dollars.
