NBC's Parent Company to Focus on Cosmetics
- Chaileedo Press
- Sep 30, 2022
- 2 min read
In the future, Green Pine will focus on cosmetics and other large consumer-related businesses to improve operating results.
On September 28, Fujian Green Pine Co., Ltd. announced that in order to focus its main resources on cosmetics, it intends to transfer the equity of two wholly-owned subsidiaries engaged in the turpentine deep processing business, and is now open to inviting transferees.
According to the announcement, the two wholly-owned subsidiaries to be transferred include 100% equity of Nanping Green Pine Chemical Co. and Longsheng (Hong Kong) Trading Co. The transfer is an overall sale of the equity interest in the aforementioned wholly-owned subsidiary, including all assets and liabilities.
Cosmetics and turpentine deep processing are the two main business segments of Green Pine. The cosmetics business is mainly operated by the subsidiary NBC, and the main holding company for the turpentine deep processing business is Green Pine Chemical. If the transaction is successful, all of the turpentine deep processing business of Green Pine will be divested and its main revenue will be derived from the cosmetics business.
According to Green Pine's 2022 semi-annual report, its total revenue was 1.416 billion yuan ($197 million) in the first half of the year, with a loss of 159 million yuan ($22 million) in net profit attributable to the parent company, and NBC's revenue was 957 million yuan ($133 million), accounting for 67.58% of the total revenue, with an operating profit loss of 118 million yuan ($16 million).
Green Pine Chemical, the main holding company for the turpentine deep processing business, reported operating revenue of 454 million yuan ($63 million) and an operating loss of 53.5143 million yuan ($7.4373 million) in the first half of the year. The other subsidiary of the sale, Longsheng (Hong Kong), had first-half revenue of HKD35.2533 million ($4.4909 million) and a net profit of HKD63,000 ($8000).
In terms of transaction price and transaction object, Green Pine said the price will be offered by mutual agreement and the counterparty has not been determined yet. The company will openly solicit the intended transferee, and the solicitation date is from September 29, 2022, to October 18, 2022.
Green Pine said that the sale is in accordance with the company's established strategic development plan to dig deeper into the value of cosmetics and other big consumption business industries. In the future, the company's main resources will be focused on the direction of cosmetics and other big consumption businesses and improve operating results.
Previously, the analysis of China's cosmetic industry by Green Pine concluded that the ceiling of China's cosmetic industry is high and the market scale still has more room for improvement. In addition, the pandemic in China is expected to be effectively controlled, and favorable factors such as the rising share of young consumers, the continued high growth and penetration of e-commerce, the upgrading of high-end brand consumption, and the explosion of short-video live streaming/influencers’ e-commerce will continue to play a role in driving the long-term trend of high growth in cosmetics.
Its analysis also expressed that in recent years, China has continued to introduce regulations on cosmetics and tighten industry supervision, which will have a short-term impact on the industry but will be beneficial to the healthy development of the cosmetics industry in the long term.
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