Chinese clothing withdraws from Shunde

According to information published by the Beijing Property Rights Exchange, 70% of the shares of Zhongfa Textile Printing and Dyeing Co., Ltd. of Shunde District of Foshan City are to be listed and transferred at 54.5547 million yuan. The transferor will be China Garment (000902). After the completion of the transfer, it will no longer hold Shunde. China Textile Textile Printing and Dyeing Co., Ltd.

China’s apparel also stated in the transfer announcement that it intends to sell its equity in Shunde to optimize the company’s asset structure and develop new businesses. Caixing International Co., Ltd. holds the remaining 30% equity of Shunde Zhongfu Company, which has waived its preemptive right to purchase.

According to reports, Shunde District, Foshan City, China Textile Printing and Dyeing Co., Ltd. was established in 2004, the registered capital of 7.2 million US dollars, the main production and operation of cotton, linen, wool, woven, woven textiles, clothing, textile products, leather products, chemical Fiber, knitwear, printing and dyeing processing. In 2010, it achieved revenue of RMB 160 million and net profit of RMB 2.71 million. As of August 31, the monthly report shows that the company achieved a net profit of RMB 201,700. On May 31st, 2011, the net book value of the net assets of Shunde was 69,462,500 yuan, with an assessment value of 77,933,100 yuan, a value-added of 8,472,600 yuan, and an appreciation rate of 12.20%.

China Garments also stated that based on the preliminary calculation of the value of assets appraisal, it is expected that the proceeds from this equity transfer will be 1.42 million yuan. In the first three quarters of this year, due to factors such as the decline in export orders, the increase in prices of raw materials and other means of production, the increase in labor costs, and the increase in costs, the net loss of apparel in China was 12.8955 million yuan.