80 million, another paint company has been sold!

After China Resources Paint, another paint company has been sold! Selling price 80 million!

On May 19th, Wanshun New Materials announced that the company plans to transfer its 51% equity of Shantou Guangcai New Materials Technology Co., Ltd. (hereinafter referred to as "Guangcai New Materials") at a price of 40.8 million yuan to Hanghua Shares, and transfer its 49% equity of Guangcai New Materials at a price of 39.2 million yuan to Huizhou Jixiang Management Partnership.

The main business of Guangcai New Materials is the production and sales of special silk screen printing inks, special gloss and glue coatings and ink products used in the fields of tobacco and wine bags, aluminum foil film materials, gold and silver card composite paper, etc. After this equity transfer, the company will no longer hold the equity of Guangcai New Materials, and Guangcai New Materials will no longer be included in the company's consolidated financial statements. In 2021 and 2022, their operating revenue was 100 million and 84.05 million respectively.

Although Guangcai New Materials' revenue accounts for a small proportion of the company's revenue, this transaction still marks Wanshun New Materials' determination to optimize resources. As stated in the announcement, divesting assets that are not directly related to future development priorities is aimed at focusing on the new energy industry and enabling the company to better develop its own advantages.

This trend of divesting assets from unrelated fields is worth exploring.

Previously, Akzo Nobel and Sherwin Williams, two major global coatings giants, reached an acquisition agreement, and Sherwin Williams announced the divestment of its architectural coatings business in China. With an annual revenue of approximately $100 million, Xuan Wei has invested in China Resources ® The brand's production and sales of decorative coatings business will be acquired by Akzo Nobel.

Xuan Wei clearly stated that the divestment is from its architectural coatings business in China, and remains committed to developing its industrial coatings business in the region. The reason for the sale is "in line with our continuous strategy of optimizing our product portfolio, brand, and customer plans to continuously create value for shareholders", with the aim of "prioritizing our resources to other areas of the company to provide greater growth, higher returns, and cash flow".

For some enterprises, there are differences in risk, revenue, and growth among different departments or assets. By divesting assets that are not directly related to future development priorities and focusing on core business areas, these enterprises can more efficiently utilize limited resources, make wiser decisions, and make better investments.