The Surging News reporter Peng Yanqiu
Makihara Shares, a leading domestic pig breeding enterprise (002714. SZ) liquidity-related issues have received a lot of attention lately.
On December 3, Makihara responded to relevant rumors that "the company's production and operation and liquidity are normal, and there is no material information that should be disclosed but has not been disclosed." The Company strongly condemns such acts and reserves the right to pursue legal liability of the parties. ”
On December 6, Makihara Responded to the Expected Commercial Tickets of More Than 30 Of Its Subsidiaries through an announcement. Makihara shares said that after verification by the company, due to the company's failure to receive the valid reminder payment application from some bearers in time, or the liquidation method chosen by the bearer did not meet the requirements of the bank, the company was unable to redeem the commercial acceptance draft on time. The company has actively communicated with bearers and banks to promote the smooth redemption of commercial acceptance bills of exchange and protect the legitimate rights and interests of bearers.
Makihara reiterated that the company's production and operation and cash flow situation are normal, and the company's monetary fund balance as of the end of September 2021 is 9.95 billion yuan.
It is worth mentioning that Makihara shares are raising funds through multiple channels to optimize the financing structure and expand to meet capital needs.
It is proposed to apply to banks and other financial institutions for a credit line of not more than 70 billion yuan
On the evening of December 6, a number of financing-related proposals deliberated and passed by the board of directors of Makihara Shares' announcement showed that Makihara Shares would raise funds through multiple channels such as applying for bank credit, applying for overseas bank loans, borrowing from shareholders, and carrying out financial leasing business.
Credit lines of Makihara shares in recent years Source: wind
According to the "Proposal on the Application of The Company and Its Holding Subsidiaries for Credit Lines from Banks and Other Financial Institutions", in order to ensure that the Company has sufficient funds for production, operation and investment and construction, Makihara Shares and its holding subsidiaries (including newly established subsidiaries or included in the scope of the consolidated financial statements) intend to apply for a credit line totaling no more than 70 billion yuan from banks and other financial institutions, and the specific financing amount will be determined according to the actual capital needs of the company and its holding subsidiaries for production, operation, investment and construction.
According to the "Proposal on the Company's Application for Overseas Bank Loans", in order to expand the company's financing channels, reduce financing costs and meet the company's production and operation capital needs, Makihara intends to apply for a loan of no more than 50 million US dollars from Dafeng Bank Co., Ltd. for a loan term of 3 years.
According to the "Proposal on Adjusting matters related to borrowing from related shareholders and related party transactions", it is agreed that Makihara Shares and its holding subsidiaries will apply for a loan amount of no more than 5 billion yuan to the related party Makihara Industry for production and operation and development of the company, and the validity period of the quota will be adjusted to be effective for three years after the deliberation and approval of the Fifth Extraordinary General Meeting of Shareholders in 2021, and the specific related matters are authorized to be handled by the management.
According to the "Proposal on the Company and Its Holding Subsidiaries to Carry Out Financial Leasing Business in 2022", in order to optimize the financing structure, broaden financing channels and meet capital needs, Makihara Shares and its holding subsidiaries intend to carry out financial leasing business for financing in 2022, and apply for financing from non-affiliated financial leasing (including financial leasing) companies or banks in the form of sale and leaseback, etc., with a total financing amount of no more than 3 billion yuan, and the financing period of each financing period is not more than 8 years (including 8 years).
Judging from the information in the announcement, the above-mentioned financing proposal of Makihara Shares is mainly to optimize the financing structure, reduce financing costs, broaden financing channels and meet operating capital needs.
Just completed the financing of 9.55 billion yuan of convertible bonds, and plans to increase financing by 6 billion yuan
On October 18, Makihara disclosed a non-public additional issuance plan to issue no more than 149216612 shares to Makihara Industrial Group Co., Ltd., the company's controlling shareholder, with the amount of funds raised not exceeding 6 billion yuan (including the principal amount) and the issue price being 40.21 yuan per share.
For this non-public additional offering, Makihara shares said that the company will use all of it to supplement working capital after deducting the issuance fee. Makihara said that the company is in a period of rapid business expansion and needs long-term stable working capital to support. At the same time, with the completion and operation of pig breeding and pig slaughtering projects invested and built by the company in recent years, the company's working capital demand has shown a continuous growth trend. Therefore, the company needs to supplement the working capital through the non-public issuance of shares to provide protection for the release of the company's future production capacity and meet the company's sustainable development capital needs. At the same time, through this offering, the goal of optimizing the financial structure and improving the company's ability to resist risks can be achieved. In addition, after the funds raised are in place, the company's capital strength and anti-risk ability are further enhanced, which is conducive to further broadening the company's financing channels, providing financial guarantees for future development, and helping the company to seize the opportunities of industrial upgrading and transformation and development in a timely manner, expand the company's development space, and realize the company's development strategy.
The issuance of Makihara shares in recent years Source: wind
Makihara shares said that at the end of 2018, the end of 2019, the end of 2020 and the end of September 2021, the company's asset-liability ratio was 54.07%, 40.04%, 46.09% and 57.77% respectively, with the company's continuous investment in capacity expansion and the gradual growth of the scale of operation, the company's asset-liability ratio has shown a certain upward trend since 2019. The funds raised through this non-public offering of shares will be used to supplement working capital, which will effectively improve the company's asset-liability structure, enhance financial soundness and prevent financial risks. At the same time, the company's net assets will be greatly improved, and the asset structure will be more stable, which is conducive to improving the company's ability to resist risks, improving the company's solvency and follow-up financing capabilities, and ensuring the company's sustained, stable and healthy development.
In August this year, Makihara also completed the issuance of 9.55 billion yuan of convertible bonds, which was used for pig breeding construction projects and pig slaughtering projects after deducting related issuance fees. The convertible bond plan shows that, together with additional funds, Makihara shares intend to invest 8.87 billion yuan for the addition of 23 new pig breeding bases, with a new breeding scale of 6.77 million heads; intends to invest 2.287 billion yuan for the construction of 4 new pig slaughtering projects, with a total slaughtering capacity of 13 million heads.
Fundraising projects after the IPO of Makihara shares Source: wind
The size of assets is expanding rapidly
In 2018, 2019, 2020 and January-September 2021, Makihara achieved total operating income of 13.388 billion yuan, 20.221 billion yuan, 56.277 billion yuan and 56.282 billion yuan, and net profit attributable to shareholders of listed companies was 520 million yuan, 6.114 billion yuan, 27.451 billion yuan and 8.704 billion yuan. As of the end of September 2021, Makihara had total assets of 169.205 billion yuan and net assets attributable to shareholders of listed companies of 56.199 billion yuan. As of the end of 2018, the end of 2019 and the end of 2020, the total assets of Makihara shares were 29.84 billion yuan, 52.89 billion yuan and 122.63 billion yuan, respectively.
Makihara shares in the third quarter of 2021 report shows that the sales expenses in the current period increased by 217.68% over the same period of the previous year, mainly due to the expansion of the company's sales scale, the increase in employee salaries and inspection and quarantine fees. Management expenses increased by 37.43% in the current period over the same period of the previous year, mainly due to the expansion of the company's production and operation scale, the increase in employee salaries and pig insurance premiums. The financial expenses in the current period increased by 212.99% over the same period of the previous year, mainly due to the increase in the scale of interest-bearing liabilities in the current period compared with the same period of the previous year. The end of the fixed assets period increased by 52.17% compared with the end of the previous year, mainly due to the expansion of the company's production and operation scale, and the completion of the construction projects into fixed assets.
Previously, Southwest Securities said that the revenue growth of Makihara shares was mainly caused by the increase in pig sales during the reporting period, and the reason for the loss in the third quarter was the sluggish market pig prices, with 8.669 million pigs sold in the third quarter, an increase of 70% year-on-year, and the average sales price was 13.4 yuan / kg, down 59% year-on-year, but the company operated steadily, and the overall profit in the first three quarters remained profitable.
Southwest Securities said in the research report that Makihara shares adapt to the rhythm of the cycle and achieve steady expansion of production capacity will help grasp the opportunity of cycle reversal in the future, scientific and effective breeding, and have a "full self-support, full chain, intelligent" business model and complete industrial chain. The company adopts the self-breeding and self-breeding mode, which can achieve rapid expansion after the heavy assets are put into construction, without intermediate links such as order outsourcing, avoiding the expansion ceiling brought about by the number of high-quality farmers or professional fattening farms, and realizing a complete industrial chain covering scientific research, feed processing, pig breeding, breeding pig expansion, commercial pig breeding, and pig slaughter.
Responsible editor: Zheng Jingxin Photo editor: Pei Jiayuan