Finance And Economics Network Capital Market News Due to the disclosure of the intention to spend 667 million yuan to purchase more than 70 million photovoltaic silicon wafers, on November 19, Diamond Glass (300093.SZ) once again received a letter of concern from the Shenzhen Stock Exchange.
In fact, as early as June this year, after announcing the restart of the photovoltaic cell and module business, Diamond Glass, which did not have abundant book funds, received a letter of concern from the Shenzhen Stock Exchange, asking the company to make further explanations on the source of project funds and the basis for project revenue calculation.
Although the company's photovoltaic business has not improved for the time being, after rubbing on the concept of photovoltaics, the stock price of Diamond Glass has soared. As of the close of trading on November 19, King Kong Glass closed at 38.18 yuan / share, down 1.47%, and the company's stock price has increased by 227.69% this year.
More than 667 million yuan of purchased photovoltaic silicon wafers have been questioned by regulation
On November 18, Diamond Glass disclosed the "Announcement on the Signing of Major Procurement Contracts by Subsidiaries", saying that from January 2022 to December 31, 2022, Wujiang Diamond Glass Technology Co., Ltd. (hereinafter referred to as "Wujiang Diamond"), a holding subsidiary of the Company, intends to purchase no less than 70.1 million N-type G12 photovoltaic monocrystalline silicon wafers from Huanou International, with an estimated total amount of 667 million yuan, and the actual purchase price will be negotiated monthly.
According to the announcement, Zhonghuan Co., Ltd. (002129. SZ) is a wholly-owned grandson company. Diamond Glass said that the two parties to the purchase contract have the ability to perform, and the signing of the contract provides a strong guarantee for the company's 1.2GW large-size half-piece ultra-high-efficiency heterojunction solar cell and module project capacity planning and realization.
According to public information, Diamond Glass is mainly engaged in the research, development and production of various types of high-tech special glass, fireproof glass systems, explosion-proof glass systems, fireproof doors and windows and fire-resistant energy-saving windows. At the beginning of the listing in 2010, King Kong Glass had a layout in the photovoltaic industry, and planned to invest 65.15 million yuan to raise funds for the "4 MW solar photovoltaic building integrated module production line project". However, after a short period of two years of operation, in 2013, because sales were less than expected, Diamond Glass stopped the production of photovoltaic cells.
With the increasing development of the photovoltaic industry, Diamond Glass, which lost 131 million yuan in net profit last year, decided to enter the photovoltaic market again.
On June 28, Diamond Glass announced that the company intends to resume the original photovoltaic cell and module production business, with subsidiary Wujiang Jingang as the main body, investing in the construction of 1.2GW large-size half-piece ultra-high-efficiency heterojunction solar cell and module project. It is expected that the total investment of the project will be 832 million yuan, the investment and construction period will be 8 months, and the average annual net profit of 120 million yuan is expected to be achieved during the production period.
For the proposed purchase of photovoltaic silicon wafers for 667 million yuan by Diamond Glass, the Shenzhen Stock Exchange requires the company to detail the specific progress of the construction of the project, and combined with the project profit forecast disclosed by the company, calculate the use demand for N-type G12 photovoltaic monocrystalline silicon wafers for the project in 2022, and explain whether it matches the expected purchase quantity.
At the same time, the Shenzhen Stock Exchange requires Diamond Glass to supplement the disclosure of the performance capacity analysis of the counterparty, Trans Europe International, to indicate whether it is engaged in the production of N-type G12 photovoltaic monocrystalline wafers, and if not, please specify whether it has a stable source of N-type G12 photovoltaic monocrystalline wafers.
Does the cash expenditure match the project production plan?
In addition to the demand for wafer use and the performance capacity of the transaction party, which attracted the attention of regulators, the Shenzhen Stock Exchange also highlighted the progress of the photovoltaic cell and module project of Diamond Glass.
According to the planning of Diamond Glass at the end of June, the total investment of "1.2GW large-size half-piece ultra-high-efficiency heterojunction solar cell and module project" is 832 million yuan, of which the construction investment is 756 million yuan, including 124 million yuan in construction project costs, 16.09 million yuan in other project construction costs, and 615 million yuan in equipment purchase and installation costs.
However, as of September 30, 2021, the book value of the company's fixed assets was 335 million yuan, a decrease of 6.35% from the end of the previous year; the book value of construction in progress was 0.43 billion yuan, an increase of 429.99% from the end of the previous year; and the cash paid for the purchase and construction of fixed assets, intangible assets and other long-term assets in the first three quarters of 2021 was 0.3 billion yuan. There are large discrepancies with the capital investment in the project planning.
In this regard, the Shenzhen Stock Exchange requires the company to detail the changes in the book value of the company's fixed assets and projects under construction at the end of the third quarter in light of the construction progress of the project, and whether the cash expenditure on the purchase and construction of fixed assets, intangible assets and other long-term assets in the first three quarters is reasonably matching the project production plan.
In addition, as of the end of the reporting period, the book value of the notes payable by Diamond Glass was 117 million yuan, an increase of 195.82% over the end of the previous year. Accordingly, the Shenzhen Stock Exchange requires the company to explain the reasons and rationality of the substantial increase in the amount of notes payable compared with the end of the previous year, whether the top five bill payable issuers have a related relationship with the company, and whether the company has overdue and unpaid payments and reasons, taking into account the changes in the main business, the payment arrangements for suppliers, and the maturity and redemption time of the notes payable.
According to the financial report, in the first three quarters, Diamond Glass achieved revenue of 280 million yuan, an increase of 39.35% year-on-year; the net profit attributable to the mother was only 1.5151 million yuan. In addition, the financial situation of King Kong Glass in the short term is also relatively tight. As of the end of the reporting period, the company's book monetary funds were $101 million, which could not cover its short-term borrowings of $225 million.
Although the performance is not good, since the announcement of the return to the photovoltaic field, the stock price of Diamond Glass has skyrocketed, from the lowest 6.96 yuan / share at the beginning of the year to the highest 32.04 yuan / share on November 18.
The Shenzhen Stock Exchange also pointed out in the regulatory letter that from October 29 to November 18, 2021, the cumulative increase in the company's price reached 50.07%, requiring the company to analyze whether the recent increase in the company's stock price matches the fundamentals in combination with the recent industry conditions and the company's production and operation; whether the company should disclose undisclosed information, whether there is a violation of fair information disclosure, and whether there is a situation of using information disclosure to cooperate with the secondary market stock price speculation.
Li Lu/Wen
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