Yangtze River Business Daily News ● Yangtze River Business Daily reporter Shen Yourong
Energy-saving iron man(300197. SZ) signed a large overseas order of more than 5.5 billion yuan, and its stock price rose strongly.
On the evening of June 28, Energy Conservation Tiehan announced that recently, the company's Dubai branch signed a contract with MAG of Life FZ-LLC (hereinafter referred to as "MAG of Life", "Owner" and "Employer"), with a contract amount of about 2.822 billion UAE dirhams (equivalent to about 5.583 billion yuan at the current exchange rate).
This is the company's first overseas project, and the smooth performance of the contract will have a positive impact on the company's operating performance in the next three years, said the company's operating performance.
On July 1, the energy-saving iron man opened the daily limit in early trading, and the whole day was strong.
In recent years, affected by a variety of factors, the operating pressure of energy-saving iron man is greater. From 2021 to 2023, the company's net profit attributable to shareholders of the parent company (hereinafter referred to as "net profit") has lost money for three consecutive years, with a total loss of more than 2.7 billion yuan in three years. In the first quarter of this year, the company continued to lose 200 million yuan.
As of the end of 2023, the company's asset-liability ratio is still more than 80%, reaching 80.79%, and the financial expenses for the year exceeded 400 million yuan.
At present, the energy-saving iron man is promoting restructuring in an attempt to improve profitability.
Signed huge overseas orders in a row
The energy-saving iron man won a huge overseas order.
According to the latest announcement, the Dubai branch of Energy Conservation Tiehan signed a large order, with a contract amount of about 2.822 billion UAE dirhams (equivalent to about 5.583 billion yuan at the current exchange rate).
The main content of the contract is that the project name is KETURAH RESORT, and the project is located on the bank of the Yunxi River in Dubai, about 5 kilometers away from the Burj Khalifa in Dubai, and adjacent to the Yunxi Flamingo Nature Reserve, which is an emerging resort in Dubai. The project introduces the international brand of Leeds Carlton, including 12 ultra-luxury villas, 5 luxury residential apartment buildings, 3 high-end serviced apartment buildings and related infrastructure construction in the surrounding area, with a construction area of about 155,000 square meters.
What is the impact of the performance of the contract on the business results of the company? According to the company's announcement, the contract amount accounted for 393.72% of the company's audited operating income of 1.418 billion yuan in 2023. The planned construction period of the project is 1095 calendar days, and after the successful implementation of the project, it is expected to have a positive impact on the company's operating performance in the next three years.
The market reacted positively to this contract. On July 1, energy-saving iron Han stocks opened with a daily limit, a full-day board, an increase of 20.18%.
In fact, the energy-saving iron man also signed a large order at the beginning of this year.
On January 11, Energy Conservation Tiehan announced that recently, the company's Middle East Branch received the "Notice of Winning the Bid" from the owner McGonagall Group for the "Mag Ketura Yunxi Residential Construction and Landscape Project" (hereinafter referred to as "the project"). The notice confirms that the company's Middle East Branch is the winning unit of the project, and the bid price of the project is 2.6 billion to 2.8 billion UAE dirhams (equivalent to about 5 billion to 5.4 billion yuan). The project period is 36 months, and the main construction content of the project is general contracting.
In addition, the energy-saving iron man also agreed with the owner of the Macgo Group to strengthen cooperation between 2024 and 2025, and strive to increase the amount of cooperation to 10 billion UAE dirhams (equivalent to about 19.5 billion yuan) in addition to the winning project.
In this regard, the company warned of the risk at the time, saying that the amount was a framework agreement, which laid the foundation for promoting specific project cooperation, but the follow-up cooperation was subject to the specific signed agreement, and there was still uncertainty about the specific implementation content and progress.
There is no doubt that if the above contracts are successfully executed, it will have a positive impact on the future operating performance of Energy Conservation Tiehan.
The net profit in the first quarter was still a loss of 200 million
The energy-saving iron man who has signed large orders one after another has had a dismal business performance in the past.
The predecessor of Energy Conservation Tiehan was Tiehan Ecology, which landed on the A-share market in 2011. From 2011 to 2017, the company's operating performance continued to grow. During this period, the company's operating income increased from 825 million yuan to 8.188 billion yuan, and net profit increased from 140 million yuan to 757 million yuan.
Since 2018, affected by multiple factors such as the market environment, Tiehan's ecological business performance has begun to come under pressure. In 2018, the company's operating income and net profit were 7.749 billion yuan and 304 million yuan, respectively, a year-on-year decrease of 5.36% and 59.81%. From 2019 to 2023, the company's operating income will be 5.066 billion yuan, 4.211 billion yuan, 2.663 billion yuan, 2.790 billion yuan, and 1.418 billion yuan respectively, of which the operating income in 2023 will only be 17.32% of that in 2017.
During the same period, the company's net profit was -912 million yuan, 59 million yuan, -354 million yuan, -866 million yuan, and -1.483 billion yuan respectively, of which from 2021 to 2023, the company lost money for three consecutive years, with a total loss of 2.703 billion yuan in three years. In the first quarter of this year, the company continued to lose 200 million yuan.
In 2020, Tiehan Ecology changed hands, and the change of ownership plan is divided into two steps - agreement transfer + participation in private placement. In the first step, Liu Shui, the controlling shareholder and actual controller of Tiehan Ecology, and its concerted actor, Urumqi Musheng Equity Investment Partnership (Limited Partnership) (hereinafter referred to as "Musheng Investment"), plan to transfer 237 million shares of Tiehan Ecology (accounting for 10.11% of the company's total share capital as of the end of 2019) to China Energy Conservation and Environmental Protection Group. In the second step, the listed company is planning a non-public offering of shares, and intends to issue no more than 602 million shares, China Energy Conservation and Environmental Protection Group intends to subscribe for 469 million shares of the non-public offering, and the total amount of funds to be subscribed does not exceed 1.407 billion yuan, and Shenzhen Investment Control Win-Win Equity Investment Fund Partnership (Limited Partnership) plans to contribute 399 million yuan to subscribe.
In 2019, a subsidiary of China Energy Conservation and Environmental Protection Group acquired a 3.16% stake in Tiehan Ecology by increasing its holdings in the secondary market.
Tiehan ecology changed hands smoothly, and the company changed its name to energy-saving Tiehan. However, judging from the operating performance since 2020, the company's operating situation has not improved.
In addition to losses, the financial pressure of the energy-saving iron man is also greater. As of the end of 2023, the company's debt-to-asset ratio was 80.79%. At the end of the period, the company's monetary funds were 2.708 billion yuan, and the long-term and short-term debts were 16.658 billion yuan. In that year, the company's financial expenses were 438 million yuan.
At present, the energy-saving iron man is planning to reorganize. According to the latest disclosure of the draft (revised draft), the company intends to issue shares and pay cash to combine 72.60% of the equity of the land restoration, 100.00% of the equity of Hangzhou Pujie, with a total transaction price of 661 million yuan, and at the same time intends to raise matching funds by issuing shares to no more than 35 specific investors, including China Energy Conservation and Environmental Protection Group. After the completion of the transaction, the company holds 100% equity interest in Dadi Remediation.
Energy Conservation Tiehan said that this transaction will be for the listed company to place high-quality assets with strong profitability, and the main business of the listed company will further expand the environmental remediation business, which will help enhance the sustainable development ability and core competitiveness of the listed company.
And land restoration is a profitable asset. In 2022 and 2023, the company's operating income will be 585 million yuan and 513 million yuan respectively, and the net profit will be 34.2439 million yuan and 43.0186 million yuan respectively.
If the restructuring is successfully completed, the profitability of the company may improve, but whether the company can really get out of trouble is still uncertain.
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