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After a few days of continuous decline, Lingda shares (300125. SZ) stopped falling and rebounded on April 17, and finally closed up 14.17% at 5.72 yuan. However, this does not mean that the stock price can stabilize, and there are still many problems to be solved in front of Lingda shares.
Since the temporary suspension of the production line of high-efficiency photovoltaic solar cells of Jinzhai Jiayue New Energy Technology Co., Ltd. (hereinafter referred to as "Jinzhai Jiayue"), the counterparties have proposed property preservation. Up to now, the total amount of preserved funds is as high as 33.6432 million yuan, which also highlights the current situation of Jinzhai Jiayue's tight funds.
Prior to this, Lingda had just made it clear that Jinzhai Jiayue would continue to stop production for 1 month. As the company's main source of income, the long-term suspension of production of Jinzhai Jiayue has had a great impact on the normal operation of Lingda shares. Due to the provision of huge asset impairment, Lingda shares also revised down the 2023 annual performance forecast.
At present, the technological iteration of the photovoltaic industry is accelerating, N-type is gradually occupying the mainstream, coupled with the downward trend of industrial chain prices, photovoltaic cell manufacturers have been tested. In this context, Lingda plans to upgrade the original PERC production line to the TOPcon technology production line during the temporary shutdown period.
The new bank account is frozen
Lingda shares recently learned through the bank system that some general bank accounts of the company and its subsidiary Jinzhai Jiayue were frozen.
According to the latest announcement, since March 26, 12 new bank accounts of Lingda shares and its holding subsidiaries have been frozen, of which 6 are occupied by Jinzhai Jiayue's frozen accounts. Lingda explained that the reason for the freezing of some bank accounts of Jinzhai Jiayue was a dispute over the sales contract with Jiangsu Zhengneng Technology Co., Ltd. (hereinafter referred to as "Jiangsu Zhengneng"). Jiangsu Zhengneng proposed property preservation, and the Yangzhong Municipal People's Court preserved 4.1028 million yuan of Jinzhai Jiayue account funds according to the civil ruling, and the actual frozen preservation amount was 225,700 yuan. As of now, the case is in the first instance stage.
In addition, 7 bank accounts of Lingda shares were frozen, which was also related to Jinzhai Jiayue. Due to the dispute over the sale and purchase contract between Jinzhai Jiayue and C&D (Chengdu) Co., Ltd. (hereinafter referred to as "Chengdu C&D"), Chengdu C&D filed for pre-litigation property preservation. According to the civil ruling, the People's Court of Wuhou District of Chengdu preserved 3.5504 million yuan of the funds in the Lingda share account, and the actual frozen preservation amount was 76,300 yuan. Up to now, Lingda has not received the court's preservation ruling.
As early as March 25, Lingda shares disclosed that the account was frozen. At that time, a total of 8 bank accounts were frozen, with a total amount of 25.9899 million yuan applied for freezing preservation, and the actual amount of frozen preservation was 869,800 yuan.
The above-mentioned account freezing was caused by a contract dispute in Jinzhai Jiayue. Specifically, because Jinzhai Jiayue and Dike shares (300842. According to the civil ruling, the Yixing Municipal People's Court preserved 14.5 million yuan of Jinzhai Jiayue account funds, and the actual frozen preservation amount was 783,000 yuan.
In addition, Jinzhai Jiayue and Haier Financial Leasing Co., Ltd. (hereinafter referred to as "Haier Leasing") had a financial lease contract dispute, and Lingda Co., Ltd. provided joint and several liability guarantees. Haier Leasing filed a pre-litigation property preservation, and the Shinan District Court of Qingdao Municipality preserved 11.49 million yuan of the funds in Lingda's share account according to the civil ruling, and the actual frozen preservation amount was 86,900 yuan.
As of the disclosure date of the announcement, a total of 20 accounts have been frozen, including 2 basic bank accounts and 18 general bank accounts, accounting for 57.14% of the total 35 basic accounts and general accounts of the company and its holding subsidiaries, and the total amount of applications for freezing preservation is 33.6432 million yuan, and the total amount of actual frozen preservation is 1.1715 million yuan, accounting for 5.1% and 0.18% of the net assets of Lingda shares in 2022, respectively , accounting for 30.2% and 1.05% of the proportion of monetary funds in 2022.
Through the search of Tianyan, the titanium media APP did not find a company that is consistent with the full name of Jiangsu Zhengneng. Chengdu C&D Co., Ltd. is an enterprise mainly engaged in multimodal transportation and transportation agency industry, Dike Co., Ltd. is mainly engaged in the production of crystalline silicon solar cell conductive silver paste, and is an upstream manufacturer of Jinzhai Jiayue, while Haier Leasing is an enterprise mainly engaged in monetary and financial services.
In recent years, Jinzhai Jiayue's operating cash flow has been tight due to the failure to raise operating funds as expected. In addition, its revenue was also lower than expected, with solar cell operating income falling by 25.75% year-on-year in the first half of 2023.
A large amount of asset impairment was accrued, and the stock price suffered
On March 15, Lingda Co., Ltd. announced the temporary suspension of Jinzhai Jiayue's high-efficiency photovoltaic solar cell production line. According to the original plan, Jinzhai Jiayue's existing 3.5GW-182mm large-size PERC high-efficiency solar cell production line will be temporarily suspended from March 14 to April 15. However, Lingda shares did not resume production on schedule, but continued to stop production for 1 month.
Lingda Co., Ltd. said that in view of the market situation of Jinzhai Jiayue PERC high-efficiency solar cell products and the difficulties of the company's supply chain, sales, labor organization and other aspects, considering the company's current financial constraints and existing debt default, the company decided to continue to suspend production of Jinzhai Jiayue's main production equipment, which is expected to stop production until May 15.
It is reported that Lingda's main business is the production and manufacturing of photovoltaic solar cells and the operation of power stations, and the main source of the company's main business income is Jinzhai Jiayue, whose monocrystalline silicon photovoltaic cell business accounts for 95.5% and 94.45% of the revenue in the first period of the latest year. Lingda said that the company is currently actively docking with the market, striving to land orders as soon as possible, and provide guarantee for the resumption of work and production.
Obviously, the long-term suspension of production of the core subsidiary has caused Lingda to face certain operating difficulties. In reply to the Shenzhen Stock Exchange's letter of concern, Lingda mentioned that if the Jinzhai Jiayue production line is scheduled normally according to the current market orders during the company's temporary shutdown, the production and operation loss is expected to increase by about 5.5 million yuan.
In addition, assets such as plant, inventory and equipment are also at risk of depreciation due to temporary shutdowns. Lingda Co., Ltd. evaluated Jinzhai Jiayue's P-type equipment, and made an impairment provision of 228 million yuan for its related assets according to the preliminary valuation, of which about 219 million yuan was newly provided for the impairment of fixed assets, of which about 5.63 million yuan was newly provided for inventory price decline.
The above-mentioned asset impairment has led to a significant expansion of the performance loss of Lingda shares in 2023. On April 10, Lingda revised its performance forecast downward, with a net profit loss attributable to the parent company of 249 million yuan to 298 million yuan, a year-on-year decrease of 1370%-1660%, and a net profit loss of 274 million yuan to 323 million yuan, a year-on-year decrease of 1307%-1559%.
According to the original performance forecast, Lingda will achieve revenue of 800 million yuan to 1 billion yuan in 2023, corresponding to a net profit loss of 19 million yuan to 38 million yuan, a year-on-year decrease of 12%-124%, and a net profit loss of 43.9934 million yuan to 62.9934 million yuan after deducting non-profits, a year-on-year decrease of 126%-224%. Under the influence of the suspension of production in Jinzhai Jiayue and the termination of the Tongling project, Lingda announced that it would postpone the publication of the annual report to April 23.
Under the multiple bearishness, the share price of Lingda shares also suffered a heavy fall. From March 18 to April 16, the share price of Lingda shares fell by 41.4%, and the market value shrank by nearly 1 billion yuan. On April 16, the stock price fell to 4.71 yuan, hitting a new low since 2016.
The upgrade of the P-type production line is in the evaluation stage
Up to now, Jinzhai Jiayue has 10 production lines, with a total production capacity of 3.5GW-182mm large-size PERC high-efficiency solar cells, and the first phase of the product adopts the PERC+SE production process. The 5GW-210mm compatible 182mm-TOPCon battery smart factory invested in the second phase is still in the construction stage.
However, the current market is not friendly to photovoltaic cell companies, and the decline in industrial chain prices and the acceleration of technology iteration are the main reasons for the temporary suspension of production in Jinzhai Jiayue.
In 2023, the overall price of the photovoltaic industry chain will fluctuate and decline, and the prices of major products will fall rapidly to an irrational range in the fourth quarter. According to InfoLink data, from the end of September 2023 to mid-March 2024, the average price of mono PERC cells (182mm/23.1%+) dropped by 38.1% from RMB 0.63/W to RMB 0.39/W. Since 2024, the average price of PERC cells has been 0.35-0.38 yuan/W, and the P-type cell manufacturers in the industry are basically in a state of production loss, and a large number of PERC production lines in the industry are in a state of shutdown.
Since the fourth quarter of 2023, the advantage of N-type batteries in the industry has increased significantly, and the profitability of P-type batteries has declined significantly. Especially in the first quarter of 2024, affected by changes in the market environment, Lingda's P-type products will have a negative gross profit.
At present, the price difference between P-type batteries and TOPcon N-type batteries is only about 0.1 yuan/W, and in 2024, TOPcon technology route batteries have become the mainstream of the market, and the iteration of battery technology is accelerating and the risk of phased excess is emerging. In the above context, Jinzhai Jiayue's backward production capacity and the original 156 upgrade, 166 upgraded to 182 specifications of the technical production line competitiveness is weak, and does not have a cost advantage in the current market.
Lingda admits that the technology used in the company's current production line has lagged behind and cannot meet the growing market demand for high-efficiency cells. In order to significantly improve the efficiency of cells, the technical team is actively conducting in-depth exchanges with equipment manufacturers, striving to achieve technology upgrades and resume production in the shortest possible time.
According to Jinzhai Jiayue's business plan, Jinzhai Jiayue is starting to evaluate and upgrade the existing production line during the temporary shutdown period, and the technical team is evaluating the phosphorus diffusion to boron diffusion on the basis of the original P-type PERC process, adding tunneling oxide layer, depositing polysilicon preparation, deposition of n+ amorphous silicon or microcrystalline silicon layer, canceling silk screen laser slotting and other technical solutions, and upgrading to the TOPcon cell technology production line through transformation on the original PERC production line.
According to Article 9.4 (1) of the GEM Listing Rules (2023 Revision), if the company's production and business activities are seriously affected and it is expected that it will not return to normal within 3 months, other risk warnings will be implemented. (This article was first published in Titanium Media APP, author: Lu Wenyan)