Ningbo Yunsheng Strips Traditional Motors

On May 31st, the company announced that it will engage in four holding subsidiaries of the traditional motor business: 75% equity of Yunsheng Motor, 75% equity of automobile motors, 75% of the equity of the motor system, and 79.13% of Nikko Motor's equity transfer to the parent company Yunsheng. Holding, the total amount transferred is 239 million yuan.

Purpose: To focus on the NdFeB industry.

The entry barrier to traditional motor business is low, the market competition is fierce, and the overall profitability of products is declining. The company actively adjusts its development strategy and establishes a strategic development direction for making the NdFeB industry stronger and stronger. The transfer of 4 traditional motor subsidiaries will make the company’s The industrial layout is more reasonable, and the company's core business is further strengthened to achieve the goal of concentrating advantageous resources and developing emerging strategic industries.

Will increase ROE.

In 2012, the revenue of the four traditional motor companies accounted for about 21% of the company's total revenue, and the net profit contribution rate was nearly 1.4%. Four traditional motor companies were stripped off. The company's total revenue has a certain impact in the short term, but it has a great impact on the company's profitability. Small; Secondly, in 2012, the ROE of the company was 16.21%. After deducting four companies, the ROE of the company was 17.51%. Therefore, the separation of traditional motor businesses will increase the company’s ROE, which will help improve the asset quality of listed companies and increase the Return.