On May 12, Tongrun Equipment announced that the company would issue A-share shares to specific objects, and the total amount of funds raised would not exceed 170 million yuan.
文 / NE-SALON新能荟小编团
On May 12, 2024, Jiangsu Tongrun Equipment Technology Co., Ltd. (hereinafter referred to as "Tongrun Equipment") issued an important announcement. The announcement disclosed the revised draft of the prospectus for the company's issuance of A shares to specific targets (2023 financial data update).
The proposed investment amount of the project is 135,000.00 yuan
According to the disclosure, the total amount of funds raised by Tongrun Equipment will not exceed 170,000.00 yuan (including the principal), and the net funds raised will be used for 18GW photovoltaic and energy storage inverter expansion projects and 5GWh energy storage system projects. Among them, the proposed investment amount is 135,000.00 yuan, and it will be used to supplement working capital and repay bank loans, totaling 35,000.00 yuan. The aim is to provide financial support for the company's expansion project in order to meet the growing market demand and enhance the company's competitiveness in the industry. After the raised funds are in place, the company will make overall arrangements for investment and construction according to the priority and progress of the project. At the same time, the company mentioned in the announcement that if the net amount of funds raised is less than the total amount to be invested in the project, the shortfall will be solved by the company with its own funds or other financing methods.
On the signing date of the prospectus, after the shareholders' meeting of Tongrun Equipment deliberated and passed the relevant proposals, the resolution was valid for 12 months. During this period, the company will carefully supervise and control the raised funds and the use of funds to ensure the reasonable use of the raised funds.
In the announcement, Tongrun Equipment specifically disclosed that the geographical location of the project is located in Songjiang District, Shanghai, and the construction period is 24 months. The main body of the project implementation is CHINT Power. As of the signing date of the prospectus, Tongrun Equipment held 97.10% of the shares of Chint Power through its wholly-owned subsidiary, Antai Power.
Tongrun Equipment said that the main body of the fundraising project, CHINT Power has rich production experience and market resources, and is capable of the expansion of 18GW photovoltaic and energy storage inverters and the construction of 5GWh energy storage systems. On the basis of the corresponding capacity expansion, the company will raise funds to implement the project construction, which is expected to have 18GW of photovoltaic and energy storage inverter production capacity and 5GWh of energy storage system capacity in the future, and will increase its market share and continue to meet the growing market demand.
In order to ensure the smooth progress of the construction and operation of the project, the company will invest self-raised funds in advance, and then replace the investment of self-raised funds in advance with raised funds after the raised funds are in place.
In the content disclosure, in addition to the progress and benefits brought by the investment projects raised by the raised funds, Tongrun Equipment also detailed the risks associated with the issuance. It focuses on the risks that may arise during the implementation of fundraising projects, such as industrial policies, uncertainty of the market environment, increased competition in the industry, and fluctuations in the supply and price of relevant major raw materials. In addition, the company also mentioned the impact that the development trend of the new energy industry may have on the company's operations, such as the risk of overcapacity, the risk of overseas sales and the risk of accounts receivable growth.
Regarding the company's financial position and impact, the company pointed out that the funds raised in this offering will enhance the company's financial strength, enhance the company's ability to resist financial risks and contribute to its financial soundness. Although it may lead to a certain degree of decline in some financial indicators before the raised funds are invested in the project, in the long-term development, with the implementation of the project, the company's main business income and profit level are expected to increase accordingly.
In May 2023, the company completed a milestone asset restructuring
Tongrun Equipment was incorporated in 2002, and its main business is metal tool cabinets, steel office furniture, precision sheet metal parts and agricultural machines. In August 2007, Tongrun Equipment successfully landed in the SME sector of the Shenzhen Stock Exchange, with the stock abbreviation of "Tongrun Equipment" and the stock code of 002150. In May 2023, the company completed a milestone asset restructuring, and the controlling shareholder was changed from Changshu Jack Factory to Zhejiang Chint Electric Appliance Co., Ltd., which is controlled by CHINT Group, which marks that the company has officially become an important member of CHINT Group.
After the reorganization, CHINT Power, whose main business is photovoltaic inverters, energy storage products and solutions, was merged into Tongrun Equipment, which made the company's business territory expand rapidly and highlighted the company's leading position in the industry. At the same time, it cannot be ignored that Shanghai Chint Power System Co., Ltd., as a subsidiary of Tongrun Equipment, has two R&D centers and five production bases, covering the business in the field of new energy photovoltaic and energy storage at home and abroad, and its products are sold to 30 countries and regions around the world, such as the United States, Japan, Germany, South Korea, Brazil, etc., which has injected a strong impetus into the company's development.
At present, Nan Cunhui, as the controlling shareholder of Chint Electric and the actual controller of Tongrun Equipment, directly and indirectly controls 53.02% of the shares of Chint Electric.
At present, Tongrun Equipment's main business covers two major fields: sheet metal products and optical storage equipment, and the main products include photovoltaic inverters, energy storage systems, metal toolbox cabinets, steel office furniture, precision sheet metal parts and agricultural machines.
In 2023, the operating income of Tongrun Equipment will be 2517.9831 million yuan, an increase of 50.06% over the same period of the previous year, of which the main business income of the metal products business through toolbox cabinets and electromechanical sheet metal products will be 1173.2394 million yuan, a decrease of 5.58% over the same period of the previous year; The photovoltaic storage inverter and energy storage business contributed revenue of 112,128.23 million yuan due to the acquisition of Antai Power and the consolidation of its financial data from June to December 2023. In 2023, the company's net profit decreased by 42.99% from the same period last year to 101.5668 million yuan, and the decline in net profit was mainly due to the acquisition of the equity of Antai Power and the fluctuation of foreign exchange gains and losses.
Two legal proceedings are still pending
On the road ahead, every enterprise may encounter many obstacles and challenges, including legal issues that may arise.
According to public information, AUI Partners, LLC was previously sued by Briggs Drive Associates. The prosecution alleges that it caught fire in an inverter fire at its building at 10 Briggs Drive in East Greenwich, Rhode Island, resulting in approximately $357,400.00 in real and personal property damage. Briggs Drive Associates argues that AUI Partners, LLC (the inverter was installed, operated, and maintained by the entity) should be liable for damages. AUI Partners, LLC applied to file a lawsuit against Power Supply USA as a third party and AUI Partners, LLC as the plaintiff in a third-party lawsuit, claiming that Power Supply USA, as the manufacturer of the inverter, breached its duty of care and required Power Supply USA to assume that AUI Partners, LLC should pay Briggs Drive All liability for damages assumed by Associates. In response to the lawsuit, Power USA has denied the allegations and has filed a detailed written response, which is still awaiting trial.
In another case, a lawsuit was also triggered by the PACK outsourcing contract between Chint Power and Kingfisher New Energy Technology (Nantong) Co., Ltd. (hereinafter referred to as "Kingfisher New Energy"). The main issue involved is that Kingfisher New Energy claimed that there was still an unpaid payment of 1.8465 million yuan for Chint Power, and it filed a lawsuit with the Hai'an Municipal People's Court. However, CHINT Power did not respond passively, but filed a counterclaim with the Hai'an Municipal People's Court in a proactive manner, demanding that Kingfisher New Energy compensate for the economic losses brought to CHINT Power by the quality of the PACK products it produced. At present, the case is still pending.
epilogue
Based on the existing business field, Tongrun Equipment adheres to the development model driven by the dual main business, continuously strengthens the competitiveness of its products, updates technology, grasps the pulse of the market, and provides strong support for the company's rapid development in the future.
In addition, Tongrun Equipment also disclosed its future development strategy. With the rapid expansion of the new energy industry, the company will actively promote the overseas localization layout, continue to expand overseas markets and develop integration advantages, and promote forward-looking product design to achieve the company's development in the field of optical storage inverter and energy storage system business. Source: NE-SALON ZJ