Every time the reporter Duan Qianqian edited by Zhao Qiao

Two sides needle (600249, diagnosis stock) (600249, SH) has finally made progress in the transfer of shares in the subsidiary company.

From June 29th to August 25th, Liangmian Pin will transfer the 35% equity of Yancheng Jikang Sucralose Manufacturing Co., Ltd. (hereinafter referred to as Jikang) to the Beibu Gulf Property Exchange. On September 6, the Zambian Bullet announced that the listing period had expired, and the only interest was Fang Feishang Industrial Group Co., Ltd. (hereinafter referred to as Feishang Industrial) who had received the equity of Jiekang Company at the listing base price.

Once the above equity transfer has been completed, the “fine chemical” business, one of the five major sections of the two-sided pin, will be completely stripped from the listed company, and the company’s resources will also be closer to the main business. For follow-up development, the reporter of “Daily Economic News” made a public call on both sides of the needle, but as of this writing, it failed to get a reply.

In July 2007, Zengpin invested RMB 43.90 million in funds to increase the equity of Jiekang and obtained 35% of the latter's shares, thereby entering the fine chemical business. Jie Kang's main product is sucralose, the world's second largest, China's largest professional manufacturer of sucralose, a well-deserved leader in the industry. Mianyangzhen said in its 2016 annual report that Jiekang has become the second largest supplier in the United States and the largest supplier in some Asian countries.

However, two issues continue to plague Jiekang. The first is that the sucralose industry is highly competitive. Before 2016, Jiekang has suffered losses for many years. Second, Jiekang has repeatedly been punished by related departments for environmental protection issues and once suspended production for rectification. In the second half of 2016, related departments increased efforts to investigate and deal with environmental issues. The environmental protection issues faced by Jiekang are even more pronounced.

On June 1 of this year, the Zambian pin announced that it plans to transfer 35% equity of Jiekang Company and the listed price is 65,570,100 yuan. At that time, the transfer of the shares of JKS was once controversial. In 2016, the relationship between supply and demand in the industry changed, and the sucralose price soared. The company turned losses into profits. In the first quarter of 2017, Jiekang’s net profit was as high as 33.5758 million yuan, which is one of the few companies that have achieved profitability in many subsidiaries.

Three months later, the transfer of the shares of Jiekang Company was finalized. The only interest of Fangfeishang Industrial was to obtain the equity of Jiekang Company with the listed reserve price of 65,570,100 yuan. For now, the double-sided pin, this gain is very important. Two-sided semi-annual report shows that in the first half of 2017, the company's revenue was 719 million yuan, and its net profit was a loss of 59.015 million yuan.

The double-sided needles have been used in toothpaste products and their products have been deeply rooted in the slogan of "a good tooth and two surfaces". However, in recent years, the two sides have expanded greatly and the main business is as many as five, namely daily chemicals, paper, medicine, fine chemicals and real estate.

However, it is precisely because of the diversification strategy. Paper and other businesses not only failed to bring new profit growth points to the two sides of the needle, but the increasing losses have also become the culprit of dragging down performance. At the same time, the ambiguous daily business of the two-sided needles has gradually declined under the "encirclement and suppression" of foreign brands and domestic-funded brands.

According to the announcement from both sides, in addition to the daily business of the main business, the four sections of the paper industry are each responsible for different subsidiaries. The carrier of its “fine chemical” business is precisely the company of Jiekang. The transfer of equity in Jiekang Company is the performance of the declining secondary industry returning to the main business.

In the business of Zhimianzhen, the paper business suffered the most serious losses. Its main body is Liuzhou Double-Sided Paper Co., Ltd., which achieved a net profit of 8,625.30 yuan in the first year of its establishment, and began to lose money in the second year; in 2015 and 2016, the annual loss of the paper products company was two years. The total amount exceeded 100 million yuan; in the first half of 2017, the company’s loss amounted to 47.3603 million yuan.

After the completion of the spin-off of Jiekang Company, will the two-sided needle peel off the paper business that has continued to lose money? On June 22, at the meeting of the two-sided shareholders, Zhong Chunbin, chairman of the Zhimianzhen, told reporters that whether or not to sell paper business depends on the specific circumstances. “Including just mentioned sucralose (referring to Jikang) is not us. It is a listed company that should be in a normal state.

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