Pagoda Industry plans major asset reorganisation, to replace new energy assets with bearing business

  • JULY 23, 2024

China’s bearing industry, the first listed company ‘reputation of the Baota Industry or will put out of its own bearing business, in order to achieve the acquisition of Ningxia Power Investment New Energy Company Limited (hereinafter referred to as’ Power Investment New Energy ‘) 100% of the equity target. The company’s shares were suspended from 19 July.

Pagoda industry announced on the evening of July 18, the company is planning a major asset reorganisation, that is, in addition to part of the assets and liabilities retained assets and liabilities mainly engaged in the bearing business as a replacement asset, and the controlling shareholder indirectly held 100% stake in the power investment in the new energy, that is, the replacement of the assets of the equivalent part of the replacement assets for the exchange;

For the difference between the replacement assets and the replacement assets, Baota Industry will issue shares to purchase from Ningxia Dentou. At the same time, Baota Industry intends to issue shares to no more than 35 specific investors to raise matching funds.

Pagoda industry tips, at present the transaction is still in the planning stage, the transaction parties have not signed a formal transaction agreement, the specific transaction programme is still in the discussion in the demonstration, there is still uncertainty. In fact, as of now, Baota Industry has not completed the transaction related intermediaries to hire work.

The bearing business to be disposed of is one of the core businesses of Baota Industry.

In 2023, Baota Industry’s operating income from the bearing industry was 188 million yuan, accounting for 63% of the total operating income. In 1996 when restructuring and listing, Baota Industry is China’s bearing industry, the first listed company, its NXZ brand is recognised as China’s well-known trademarks, access to the national export exemption qualification, the products are sold to more than 50 countries and regions.

The main business of the proposed new energy of electric investment is the investment development and operation of photovoltaic power generation, wind power generation and energy storage power station projects, with a registered capital of 457 million yuan.

The company was established in 2018 by Ningxia Dentou’s Ningxia Dentou Sun Mountain Wind Power Generation Co Ltd as the main body, absorbing and merging Ningxia Dentou Sun Mountain Photovoltaic Power Generation Co Ltd and Ningxia Dentou Lingwu Wind Power Co Ltd, committed to realising the development of new energy power generation industry on a large scale.

Pagoda industry this round action in the previous has signs.

Pagoda Industry recently announced that it received a non-independent director, chairman Li Changsheng and non-independent director Li Xiuyong’s written resignation report, the two resigned due to work adjustments, the board of directors elected Du Zhixue as chairman of the company.

Du Zhixue in July this year has just been nominated for the company’s internal director, before Du Zhixue in ningxia city development group limited liability company as deputy secretary of the party branch, general manager.

In the same month, Baota Industry disclosed the results of the preview shows that the 2024 half-year company expects net profit for the loss of 26 million yuan to 33 million yuan, the company lost 30.9 million yuan in the same period last year.

Baota industry will performance loss attributed to the bearing business: bearing business competition is fierce, the industry’s overall growth rate is low, the company’s main bearing products market price than the same period of the overall change is small, resulting in the company’s loss in this reporting period; the company invested in the construction of the Northwest Bearing high-end precision bearings industrial upgrading and transformation project is under construction, has not yet formed production capacity.

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