February 14 should be a day for couples to express love, but Yihuatong, the first share of hydrogen energy, chose to say to investors: "The company's current production and operation activities are normal. This year, the company will continue to strive to do a good job in product research and development and marketing, further enhance the value of the company, and safeguard the interests of the majority of investors. "I don't know if this is the most affectionate confession between listed companies and investors."
Originally, this is because the stock price of Yihuatong began to decline from the highest reach of 328.14 yuan / share on December 16, 2021, as of the afternoon close of February 14, 2022, the company's stock price has fallen to 160.58 yuan / share, two months, the market value evaporated 11.955 billion.
Yihuatong stock daily candlestick chart
Such a sharp shock to the stock price makes investors sit on a needle felt, and the stock price of Yihuatong has suffered a waist cut, and there is a very important event that the company's 2021 financial forecast has been released.
According to the financial forecast, the company expects to achieve a net profit attributable to the owners of the parent company in 2021 of -140 million yuan to -190 million yuan, which is not the first loss of Yihuatong. The company's loss in the same period last year was 22.5236 million yuan, while this year's pre-loss was 140-190 million yuan, and the loss was further aggravated, which may have affected the confidence of investors.
Where is the loss of the hydrogen energy company with the largest market share?
Hydrogen Energy Hui (h2-2005) learned that in 2021, China's fuel cell vehicle traffic insurance sales were 1885 vehicles, an increase of 25.75% year-on-year, among the 40 fuel cell system companies, Yihuatong was the biggest beneficiary of the Beijing Winter Olympics. According to the company's prospectus submitted to the Hong Kong Stock Exchange on January 27, yihuatong's market share in China's fuel cell system market has reached 34.8%, ranking first, and has been installed in the Ministry of Industry and Information Technology's new energy vehicle catalog of 67 fuel cell vehicles!
It is such a bullish company that has suffered defeats on the road to profitability, what is the reason why Yihuatong has fallen into the situation of being abandoned by investors?
Yihuatong signed a cooperation agreement with Toyota
Hydrogen Energy Hui (WeChat public account: h2-2005) learned that at present, Yihuatong has formed a hydrogen energy company with an autonomous hydrogen fuel cell engine as the core, including bipolar plates, stacks, vehicle controllers, intelligent DC/DC, hydrogen systems, test equipment, fuel cell laboratory full solutions, etc., and Yihuatong has also jointly established "United Fuel Cell System Research and Development (Beijing) Co., Ltd." with Toyota and other 4 automobile manufacturers, and its customer scope covers Yutong , Foton, Zhongtong, Shenlong, Suzhou Jinlong, Ankai, Zhongzhi, Dongfeng, Heavy Duty Truck, Shaanxi Automobile, BAIC, GAC, Changan and many other car companies.
Yihuatong, a hydrogen energy company with the production capacity of the core equipment of hydrogen energy vehicles, strong partners and extensive customer resources, should not lose money. It turned out that the loss was the "thunder" buried by the previous contract.
According to the official statement of Yihuatong, "In the fourth quarter of 2021, an additional provision was made for 50% of the 330 million receivables previously retained by Shenlong Automobile and Zhongzhi Automobile, totaling 165 million yuan, and the remaining 10% ratio was not accrued." ”
How exactly did this bad debt come about?
This has to start from The second largest shareholder of Yihuatong, Dongxu Optoelectronics. According to the shareholding structure of Yihuatong, Dongxu Optoelectronics is the second largest shareholder with a 3.6% equity, and Dongxu Optoelectronics spent 3 billion yuan to acquire 100% of the equity of Shenlong Automobile in 2017, so yihuatong and Shenlong Automobile can be regarded as "brothers". For such a reason, the cooperation between Yihuatong and Shenlong Automobile is closer, especially in 2019, the two sides signed a service contract worth 100 million.
Counting the previous cooperation, Shenlong Automobile owes yihuatong about 280 million yuan in accounts payable. Because Dongxu Optoelectronics, as a common shareholder of the two companies, Dongxu Optoelectronics is also mired in losses, Yihuatong did not turn face with Shenlong Automobile, but chose to bear all this silently.
Yihuatong is the top eight shareholders
Another Zhongzhi Automobile has been included in the list of untrustworthy executors, owed more than one billion Huatong family money, according to the data of the enterprise inspection network, Zhongzhi Automobile was involved in 86 lawsuits, and the total amount of execution exceeded 247 million.
In other words, the 330 million old accounts occurred before 2021, and the results are not on the 2021 operating report card. If the impact of these 165 million bad debts is deducted, the operating results in 2021 should be a net profit of 25 million to -25 million yuan, and the median value of Yihuatong has actually achieved breakeven.
Behind the external troubles are internal worries
Although the loss of Yihuatong this time is because the actual revenue of the "old account" company that is saddled with the past is in the upward space of growth. According to the company's financial forecast, it is expected to achieve operating income of 610 million yuan to 650 million yuan in 2021, an increase of 37.7071 million yuan to 77.7071 million yuan compared with the same period of the previous year (statutory disclosure data), an increase of 6.59% to 13.58% year-on-year.
Hydrogen Energy Sink (h2-2005) learned from Yihuatong's annual financial report data that the company's gross profit margin and net profit margin have been on the downhill road since 2018. In 2018, the company's gross profit margin was 50.32%, by 2020, the gross profit margin has dropped to 43.66%, and by the end of September 2021, the gross profit margin level of Yihuatong has dropped to 30.39%. The same is true of the net interest rate, which was 4.73% in 2018, fell to -5.69% at the end of 2020, and the company's net interest rate was as low as -25.87% by the end of September 2021.
The decline in gross profit margin and net profit margin indicates that there is a problem with the company's profitability. This is because under the buyer's market, downstream car companies continue to reduce the price of hydrogen fuel cells, and the average price per kW falls more than the decline in production costs per kW, resulting in the gross profit margin and net profit margin of Yihuatong's hydrogen fuel cell system are declining. In this case, the shareholders of Yihuatong are not calm, and they have chosen to cash out.
The second, fifth and ninth largest shareholders of Yihuatong Company cashed out more than 460 million yuan in just two months from the end of September to the beginning of December 2021. Hydrogen Energy Hui (WeChat public account: h2-2005) found that from September 2 to December 9, 2021, Mizuki Yangfan reduced its holdings by 732,600 shares to cash out 211 million, and from September 29, 2021 to December 1, 2021, Mizuki Changfeng reduced its holdings by 537,200 shares to cash out 150 million, mizuki vision reduced its holdings by 365,200 shares to cash out 100 million, and reduced its holdings by 1.635 million shares to cash out 461 million! That's higher than the cumulative amount of the company's losses for two consecutive years.
The shareholders' operation has made Yihuatong's cash flow very tight. Net cash flow from operating activities was -107 million yuan in the first half of this year, compared with -104 million yuan in the same period last year. In the past four years, Yihuatong's net operating cash flow has been negative. At the end of 2020, its monetary funds were 1.058 billion yuan, and as of September 30 this year, its monetary funds were reduced to 663.7 million yuan, which was nearly halved from 1.213 billion yuan in the same period of the previous year.
Financing for a Hong Kong stock listing is imminent
Yihuatong's unoptimistic financial situation has the problem of external supplier arrears, but also the problem of cash-out of internal shareholders, and the company's operating net cash flow has shrunk again and again, which has indirectly affected the company's development.
It is conservatively estimated that the maximum book capital of Yihuatong will be only 300-400 million, in order to make up for the lack of cash flow, the company borrowed up to 120 million from banks in 2019, 185 million in 2020 and 118 million yuan as of November 30, 2021, with annual interest rates ranging from 4.57% to 5.87%, 3.65% to 4.79% and 3.85% to 4.05%, respectively. At an annual interest rate of 4%, the company needs to repay approximately $4 million in interest per year.
Bank lending has been difficult to meet the needs of Yihuatong, and listing and refinancing in Hong Kong is a necessary path. Even if the Listing of Hong Kong stocks is completed as soon as the second quarter, it has become uncertain whether Yihuatong can reverse the predicament.
If the Hong Kong listing is successful, Yihuatong will have sufficient funds for building a new generation of fuel cell research and development platform, expanding the production capacity of battery stacks, investing in upstream and downstream companies in the hydrogen energy industry chain to complement themselves, and carrying belts for publicity and promotion.
In addition, if Yihuatong can reduce the amount of accounts receivable and reduce the amount of inventory, with its technical capabilities and multi-channel customer resources cooperated with Toyota, the company should be able to quickly turn around losses.
As a listed company that has focused on the field of hydrogen energy from beginning to end, Yihuatong should have become a sharer of the dividends of the development of the hydrogen energy industry, but its development situation did not meet the expectations of investors compared with other listed companies that crossed borders into hydrogen energy.
This makes people can't help but have some doubts about the future development of the hydrogen energy industry, the leading hydrogen energy stocks with the largest market share are losing money, so can other hydrogen companies stick to the day of profitability?
Yihuatong is still full of confidence in this, in the prospectus for listing in Hong Kong, Yihuatong said: In the future, it will focus on seven cities such as Beijing, Zhangjiakou, Shanghai and Zhengzhou, which is also conducive to the research and development of hydrogen fuel cells and cost control.
After entering these key cities, with these seven cities as the center, expand the promotion city with a straight-line distance of 500 kilometers; until the breakthrough of hydrogen production technology, then use the previous promotion city and the intercity pipe network as a link to build a hydrogen energy industrial zone.
It is hoped that Yihuatong can realize these great ideas and help the development of the mainland hydrogen energy industry to achieve fruitful results.