On the evening of September 26, ST Xulan, an A-share listed company, announced that as of September 26, the company had received about 269 million yuan from the controlling shareholder Dongxu Group for non-operating occupation.
The outside world believes that Dongxu Group took out real money to return the occupied funds, reflecting the attitude of the controlling shareholder to earnestly fulfill the main responsibility and actively raise and repay the occupied funds.
In fact, in addition to the controlling shareholder to repay part of the non-operating occupied funds, ST Xulan has been in frequent news recently.
On the evening of September 11, ST Xulan announced that a creditor of the company applied to the Shenzhen Intermediate People's Court for reorganization of the company on the grounds that the company could not pay off its due debts and obviously lacked solvency, but had reorganization value, and applied to start the pre-reorganization procedure. Since then, the reorganization of the asset value of ST Xulan is expected to attract the attention of the capital market.
Previously, from the end of July to the beginning of August, ST Xulan's directors, supervisors and senior executives collectively increased their holdings of the company's shares three times, conveying their confidence in the company's future development. At the same time, ST Xulan has established a development strategy of "integration of wind, solar, hydrogen storage and computing power" in the next five years, consolidating the foundation for the company's high-quality development in the future.
The reorganization of listed companies is a systematic project, and in addition to the willingness of creditors and the high market value of the listed company, the attitude of the controlling shareholders is also a "key part".
Looking back, the repayment of the occupied funds by Dongxu Group at this time is of great positive significance for ST Xulan to maintain the value of the reorganization, reduce the difficulty of the reorganization, and improve the possibility of reorganization, and the reorganization expectation of ST Asahi is heating up again.
In the capital market, there are many cases of performance improvement and value revaluation achieved through reorganization. Once ST Xulan is successfully reorganized, the financial package problem is also expected to be solved, and listed companies, shareholders, creditors, partners and other parties are expected to usher in a win-win result. Of course, the assumption of all this lies in the implementation and realization of the reorganization.
The controlling shareholder released a positive signal, and the expectation of ST Xulan's "substantial reorganization" heated up
ST Xulan is one of the few listed companies in the new energy industry in China, focusing on the dual main business layout of new energy and ecological and environmental protection, and providing comprehensive solutions and technical services for green development integrating smart energy operation and management, ecological environment governance and other customers including central enterprises and state-owned enterprises.
Based on the market position of the listed platform, in the tide of energy transformation under the national "dual carbon" strategy, ST Xulan realizes risk resolution and sustainable operation through reorganization, which is of great significance to maintain the interests of investors and creditors and the stability of the capital market, as well as the steady advancement of the new energy industry.
Summarizing historical cases, whether the reorganization of listed companies can be promoted mainly depends on three aspects: first, whether the subject qualification of the listed company has a high market value; second, the willingness and responsibility of the controlling shareholder; The third is the willingness, trust and support of creditors.
According to the series of announcements of ST Xulan, all parties seem to show their expectations for the reorganization of listed companies.
On September 11, ST Xulan announced that creditors applied to the court for the reorganization of the company on the grounds that the company "has reorganization value" and applied to start the pre-reorganization procedure. Soon after, the controlling shareholder Dongxu Group repaid 269 million yuan of non-operating occupied funds, strengthening the reorganization expectation of the listed company.
In recent years, the reorganization of listed companies is becoming normalized and market-oriented, and has become one of the important ways for listed companies to resolve and clear risks. In 2023, a total of 15 A-share listed companies will complete restructuring, an increase of nearly 40% over the previous year. As of the end of 2023, there are 103 listed companies in China that have completed reorganization.
In past restructuring cases, the government, regulators, courts and relevant parties have severely cracked down on "flickering reorganization" and taken a positive attitude towards "substantive reorganization" with the goal of truly improving the quality of listed companies and achieving sustainable development.
In the capital market, there are many cases of performance improvement and value revaluation achieved through "substantial reorganization".
For example, the domestic monosodium glutamate king Lotus Health, once ranked first in the world in the output of monosodium glutamate in a single factory, with a domestic market share of 43.4%. However, due to unfavorable factors such as market contraction and financing difficulties, Lotus Health suffered serious operating difficulties and debt crises.
Around 2020, Lotus Health underwent reorganization, with revenue increasing from 1.655 billion yuan in 2020 to 2.101 billion yuan in 2023, and non-net profit doubling from 68.28 million yuan to 118 million yuan, ending the previous 10 consecutive years of huge losses. In the secondary market, from 2022 to 2023, Lotus Health's share price will rise from a minimum of $1.96 to $8.24.
At present, a number of policies on the M&A and restructuring market have been introduced one after another, and the policy environment has been continuously optimized, and the A-share market is entering a new round of M&A and restructuring cycle. The integration of the industrial chain may become an important "main line" of the M&A market this year.
Regarding the expected reorganization of ST Xulan, third-party analysts said that if the reorganization participants have the same industrial background, it is expected to achieve industrial chain synergy. Once the reorganization is successful, it is very likely that ST Xulan's stock price and assets will be revalued.
Whether it is the substantive actions of the controlling shareholders and creditors, or the reorganization expectations predicted by the outside world, it depends on whether the entity qualification of the listed company has a high market value, which is the key factor for the listed company to implement the reorganization and achieve sustainable development after the reorganization.
Wind power projects have been won one after another, and ST Xulan's basic market has been further stabilized
In July this year, ST Xulan signed an EPC contract with Changwu New Energy for the 150MW wind power project in Changwu, Shaanxi Province with a total price of 960 million yuan. On August 1, ST Xulan said on the interactive platform of the Shenzhen Stock Exchange that the 100MW wind power project in Sunwu County was approved by the Heilongjiang Provincial Development and Reform Commission, and the wind power project was invested and constructed by Sunwu County Jidian Xulan Company. Sunwu Jidian Xulan Company is 50% owned by ST Xulan.
With two major wind power projects in succession, ST has proven to the market the stability of its operations and the potential for sustainable development. At the same time, there is a significant industrial background and corporate strategic logic behind it.
In 2020, the national "dual carbon" strategy was proposed, and the new energy industry was on the rise. As early as 2014, ST Xulan entered the field of new energy power station investment in a forward-looking manner, and has been deeply cultivated for ten years, showing excellent competitiveness in terms of asset quality and cash flow performance.
From the perspective of asset quality, at present, ST Xulan has 57 self-sustaining power stations of various types, with a grid-connected capacity of about 1GW, and an external photovoltaic, wind power, energy storage and other operation and maintenance projects of about 2GW, covering 20 provinces across the country, realizing a wide layout from east to west and from south to north. According to the 2024 semi-annual report, the approved electricity price of the company's completed power stations will remain unchanged for 20 years, which can bring continuous and stable performance guarantee and is an important ballast asset of the company.
Looking at the cash flow performance, in the consolidated cash flow statement of the 2023 annual report, the cash received by ST Xulan from the sale of goods and the provision of labor services in 2023 will be 2.187 billion yuan.
The good performance of asset quality and cash flow is due to the sound performance of the operation. ST Xulan has a complete system of investment and development, engineering design, construction, intelligent operation and maintenance, technology research and development of photovoltaic, wind power and energy storage power stations, and has accumulated rich experience and resources to create a comprehensive and integrated core competitiveness.
In other words, with its unique business model, strong industrial integration capabilities and market development capabilities, ST Xulan can win projects one after another.
And this is just the beginning, according to the plan, ST Xulan will focus on the new strategy in the industrial layout, cooperation and exchanges, technological innovation, management system, talent team construction and other aspects of steady progress, plans to complete the next five years to complete the deep integration of production, education and research with the integration of technological innovation system, the construction of a number of "wind, solar, hydrogen storage and computing power integration" comprehensive excellent demonstration projects.
ST Xulan's business layout and technical strength have also been recognized by the industry. It is understood that ST Xulan has been on the list of "Top 500 Global New Energy Enterprises" for seven consecutive years.
Recently, under the witness of government departments, authoritative experts in the industry, industry associations, and leading enterprises in photovoltaic storage, ST Xulan won the 2024 "Influential Photovoltaic Power Plant Operation and Maintenance Brand" award. ST Xulan believes that this honor is not only a recognition of the company's professional strength in the field of photovoltaic operation and maintenance, but also an affirmation of the company's insistence on innovation-driven and deep market cultivation over the years.
It can be said that ST Xulan itself has good asset quality and comprehensive competitiveness, and has consolidated future growth expectations through the new strategic layout. The sustainable development of ST Xulan can not only bring more returns to shareholders and safeguard the rights and interests of creditors, but also play a positive role in the new energy transformation of local industries.
At present, reorganization is one of the best ways for ST Xulan to solve its financial difficulties, and the controlling shareholder returns 269 million occupied funds at this time, which is a positive action to maintain the reorganization value of the listed company and reduce the difficulty of reorganization. Subsequently, will ST Xulan enter into a pre-reorganization or reorganization procedure to achieve performance improvement and value revaluation? It's worth paying attention to.