Producer: Sina Finance Listed Company Research Institute
Author: Hao
At the end of the year, some companies with declining performance began to accelerate the sale of assets.
On December 15, Sany Renewable Energy announced that it intends to transfer 100% of the equity of Tongyu Tongzhao New Energy Co., Ltd. (hereinafter referred to as "Tongzhao New Energy") to Jilin Jidian Green Energy Development Co., Ltd. (hereinafter referred to as "Jidian Green Energy"), and the transfer consideration is tentatively set at 263 million yuan. After the completion of this transaction, it is expected to increase the company's total profit by about 305 million yuan.
On the same day, the company also announced that it would transfer 100% of the equity of Jilin Xiangyu New Energy Co., Ltd. (hereinafter referred to as "Xiangyu New Energy") to Jidian Green Energy, and the transfer consideration was tentatively set at 203 million yuan. After the completion of this transaction, it is expected to increase the company's total profit by about 419 million yuan.
Sany Renewable Energy said that this transaction is in line with the company's overall strategy of "rolling development" for the power station operation business, that is, in the process of continuous investment and construction of new power station assets, it will continue to transfer mature power station projects at different times, and generally control the scale of existing assets, which is conducive to further integrating resources and giving full play to the investment benefits of funds.
In 2023, the year after Sany Renewable Energy went public, the company's profit declined for the first time in many years, and the decline accelerated in the third quarter, and the gross profit margin fell for four consecutive years. Under the pressure of performance, the company accelerated the sale of completed projects, and announced 5 asset sale plans during the year.
In 2022, Sany Renewable Energy's IPO will overraise 2.5 billion yuan, and during the downturn of the wind power industry, it will pay an annual salary of 50 million yuan to the chairman and general manager, which is 10 times more than its peers. What's even more outrageous is that before listing, Sany Renewable Energy implemented equity incentives to a small number of executives at a very low price of 2 yuan per share, and when the stock price broke, it still made huge profits.
In the second year of listing, the performance changed face, and the pace of asset sales accelerated
Sany Renewable Energy, formerly known as Sany Electric Co., Ltd., was established by Sany Group in March 2008, and its main business is wind power products and operation and maintenance services, wind power construction services and power generation revenue. In 2022, the above businesses accounted for 82%, 12% and 5% of revenue, respectively. Among them, the sales revenue of wind turbines in 2022 will account for 72%, which is the main source of revenue for Sany Renewable Energy.
However, with the end of electricity price subsidies and the rush to install land and sea winds, the wind power industry has fully entered a period of economic downturn from 2022, and the involution of the industrial chain has intensified, and profits have been under pressure.
Since the beginning of this year, the price reduction tide of the whole wind power industry chain has continued, and the price of wind turbines has dropped from about 1,800 yuan/kW at the beginning of the year to about 1,550 yuan/kW in September, and the average selling price of wind turbines has dropped by 15% in nine months.
Affected by this, Sany Renewable Energy's gross profit margin in the first three quarters was 19.67%, a decrease of 6.47 percentage points compared with the same period in 2022, and the gross profit margin has fallen for 4 consecutive years. In the third quarter of this year, the company's gross profit margin was 14.90%, down 9.63 percentage points year-on-year and 5.82 percentage points quarter-on-quarter, which was rapidly narrowing compared with peers such as Goldwind and Mingyang Intelligence.
The accelerated decline in profitability has put Sany Renewable Energy's performance under significant pressure.
In the first three quarters of 2023, Sany Renewable Energy's operating income was 7.490 billion yuan, an increase of 18.04% year-on-year, the net profit attributable to the parent company was 1.031 billion yuan, a year-on-year decrease of 1.21%, and the non-net profit was 752 million yuan, a year-on-year decrease of 22.84%.
In the third quarter of this year, the company's revenue was 3.575 billion, a year-on-year increase of 58.03%, the net profit attributable to the parent company was 214 million, a year-on-year decrease of 12.89%, and the non-net profit was 68 million, a year-on-year decrease of 71.20% and -75.44% month-on-month, and the net profit margin was 5.98%, a year-on-year decrease of 4.86 percentage points and a month-on-month decrease of 8.24 percentage points.
After years of continuous profit growth, but after the listing, it encountered a change in performance, which may have put Sany Renewable Energy under pressure, and the company began to accelerate the pace of asset sales to boost performance.
According to statistics, up to now, Sany Renewable Energy has successively announced the sale of a number of projects such as Taihangshan New Energy, Channel Chiyuan New Energy, Sany Solar, Tongzhao New Energy, and Xiangyu New Energy, with a total transaction price of more than 1.1 billion yuan. Among them, the sale of Tongzhao New Energy and Xiangyu New Energy, with a transaction price of only 466 million, can bring about 724 million profits to the company.
Executive remuneration is 10 times higher than that of peers, and a small number of personnel are rewarded with low prices before listing
In fact, after Sany Renewable Energy went public, when the industry continued to decline and the company's performance and profitability both declined, it still offered sky-high salaries to key executives, which made the market feel unreasonable.
In 2023, Zhou Fugui, chairman of Sany Renewable Energy, will have an annual salary of 42.3561 million yuan, and at the same time directly hold 37.563 million shares of the company, which is currently worth more than 1 billion yuan, while in 2019, Zhou Fugui, then chairman and general manager of the company, will receive a salary of 9.8851 million yuan, which includes the remuneration he receives from the controlling shareholder, actual controller and other enterprises controlled by Sany Renewable Energy. In four years, Zhou Fugui's annual salary has increased by as much as 4 times.
In addition to the chairman, the company's other executives are also staggeringly high. Taking general manager Li Qiang as an example, his annual salary in 2023 will be as high as 54.9789 million yuan, and he will directly hold 2.9655 million shares.
In contrast, whether it is Goldwind Technology and Mingyang Intelligence, which are in the first echelon of wind power, or Yunda Co., Ltd., which is in the second and third echelons with Sany Renewable Energy, the annual salary of its chairman and general manager is less than one-tenth of that of Sany Renewable Energy, and the gap is inexplicable.
What's even more outrageous is that Sany Renewable Energy also implemented equity incentives close to zero cost for a small number of executives a year before its listing.
In January 2021, Sany Renewable Energy implemented a stock option incentive plan, granting a total of 59.31 million stock options to 39 incentive recipients, with an exercise price of RMB 2.00 per share, with a grant date of January 12, 2021 and a validity period of 10 years.
It should be noted that Zhou Fugui, then chairman and general manager, was granted 9.885 million shares, accounting for 16.67% of the total equity incentives, and Li Qiang, then deputy general manager, was granted 19.77 million shares, accounting for 33.33%. Based on the current stock price of 28 yuan, the two people only have equity incentives, and the floating profit will reach hundreds of millions of yuan.
It is worth mentioning that in June 2022, under the pressure of public opinion on a large number of related party transactions and capital exchanges with Sany Group, Sany Renewable Energy realized the IPO of the Science and Technology Innovation Board at a price of 29.80 yuan per share, and was expected to raise 3.172 billion yuan before listing, and actually raised 5.611 billion yuan, which was about 2.5 billion yuan. More than a year after its listing, Sany Renewable Energy is still in a state of breakage.
At a time when the company's performance was declining and investors were suffering losses, Sany Renewable Energy used over-raised funds to issue huge salaries and incentives to a small number of directors, supervisors and senior executives, which undoubtedly made the market cold and helpless.