"Electric Eel Finance" article / Yang Li
Jibel (688566.SH) once again released a private placement fundraising plan, compared with the previous one, the total amount of private placement raised this time has decreased by 100 million yuan, and the fundraising project has also been changed from the original two to one. In recent years, the company's monetary funds have been sharply reduced to half, while the growth of net cash flow from operating activities has been weak or even declined. If the private placement is successfully implemented, the company has raised more than 1.3 billion yuan since its listing, while the cash dividend for the same period was 269 million yuan.
The total amount of funds raised by 100 million yuan was "shrunk" by 100 million yuan
On April 26, Jiangsu Jibel Pharmaceutical Co., Ltd. (hereinafter referred to as Jibel) made new progress in issuing RMB ordinary shares (A shares) to specific targets through simplified procedures. According to the preliminary plan (second revised draft) issued by the company, the number of shares to be issued in this private placement is 7,446,889 shares, and the total amount to be subscribed is 198,161,716.29 yuan.
Jibel landed on the A-share market in May 2020, raising 1.107 billion yuan at that time, and after deducting the issuance expenses, the actual raised funds were 1.02 billion yuan.
For this private placement, Gebel released a plan in July 2023, and the total amount of funds planned to be raised at that time was no more than 298.1619 million yuan (including the principal number), and the fund-raising projects covered two, namely: JJH201501 R&D project (phase III clinical research) and high-end preparation R&D center construction project.
The fixed increase plan (second revision) released this time shows that the fund-raising project has been changed from the original two to one, leaving only the construction project of the high-end preparation R&D center. The raised funds have also "shrunk" from the original 298 million yuan to 198 million yuan now.
From its listing in May 2020 to its release in July 2023, why did Gebel launch its fundraising plan again three years after its listing? This may be directly related to the sharp decline in the company's monetary funds.
Monetary funds decreased by more than half, and operating cash flow decreased by two percent year-on-year
According to the financial report released by Jibel, as of December 31, 2022, the company's monetary funds were 904 million yuan, and by December 31, 2023, the company's monetary funds have dropped to 695 million yuan, a decrease of 23%; During the same period, the company's receivables balance rose to 229 million yuan from 92.6 million yuan before.
According to the report released by Gibel for the first quarter of 2024, as of March 31, 2024, the company's monetary funds have fallen to 483 million yuan, a decrease of 31% from the beginning of the year.
It can be seen that in the past period, Gebel's monetary funds have been declining sharply, and the company's monetary funds as of the end of the first quarter of 2024 are less than half of those at the end of 2022. At the same time, the company's net cash flow from operating activities grew sluggishly.
According to the annual report, Gebel is a high-tech enterprise specializing in drug research and development and production, with product functions covering many therapeutic fields such as improving white blood cells, anti-hypertension, enhancing immunity, treating joint diseases, anti-eye infection, treating bronchitis, protecting liver function, etc., and is committed to drug research and development for the treatment of depression, tumors, stomach diseases and other diseases.
According to the 2023 performance report released by Gebel, during the reporting period, the company achieved operating income of 861 million yuan, an increase of 31.49% over 2022; In the same period, the net profit attributable to shareholders of listed companies before and after deduction of non-profits was 219 million yuan and 209 million yuan respectively, an increase of 41.65% and 49.99% respectively compared with 2022; Net cash flow from operating activities for the same period was RMB160 million, an increase of 5.82% over the previous year.
From January to March 2024, Jibel achieved operating income of 194 million yuan, a year-on-year increase of 17.47%; In the same period, the net profit attributable to shareholders of listed companies before and after deduction was 52.51 million yuan and 51.78 million yuan respectively, an increase of 38.15% and 37.25% respectively over the same period last year; The net cash flow from operating activities in the same period was 81.9 million yuan, down 20.22% from the same period last year.
As a result, for the full year of 2023 and the first quarter of 2024, Gebel's net cash flow from operating activities grew sluggishly or even declined. This is also one of the reasons why the company's monetary funds have dropped significantly.
If the private placement can be successfully implemented, the total amount of funds raised by Jibel from the market since its listing will reach more than 1.3 billion yuan. Since its listing in 2020, Gebel has paid three cash dividends to shareholders, in 2020, 2021 and 2022, with dividends of 129.7176 million yuan, 114.9013 million yuan and 154.6678 million yuan respectively, with a total dividend of 269 million yuan in three years. The dividend yields for the three cash dividends are 0.92%, 1.05% and 1.12%, respectively.