Yangtze River Business Daily reporter Ming Hongze
The global photovoltaic module leader Dongfang Risheng (300118.sz) is a car.
Founded in 2002, Risen Energy was listed on the Shenzhen Stock Exchange in 2010, and with the help of rapid expansion of the capital market, it has become a global photovoltaic module leader.
While deeply cultivating the field of photovoltaic modules, Risen Energy is also involved in photovoltaic power plants, new materials, smart lamps, energy storage, new energy financial services and many other fields.
However, the issuance of 3.3 billion yuan of convertible corporate bonds that continued for three years ended in failure, and the company was punished as a result.
The fundraising failed and the expansion was blocked, and Risen Energy took the bulk disposal of assets to withdraw funds to protect the core business of photovoltaic modules. In just over half a year alone, the company has announced the disposal of about 3.8 billion yuan in assets.
On the evening of October 22, the three quarterly reports disclosed by Oriental Risen showed that in the first three quarters, the company achieved a net profit attributable to the shareholders of the listed company (hereinafter referred to as net profit) of 354 million yuan, a year-on-year decline of more than 40%.
The reporter of Changjiang Business Daily found that there was a helpless move for Oriental Risheng to disclose the disposal of assets. The company implemented the employee stock ownership plan, this year's net profit assessment number of 1.2 billion yuan, from the current point of view, relying on the main business alone basically can not meet the standard.
3.3 billion bond financing failed intensive sell-offs
Oriental Sunrise embarked on the road of selling children, and it was out of control.
On October 21, Risen Energy issued an announcement on the sale of assets. Specifically, the Company's wholly-owned company, Oriental Risheng (Ningbo) Electric Power Development Co., Ltd. (hereinafter referred to as "Risheng Power"), intends to transfer 100% of the equity of Gaoyou Revitalization New Energy Technology Co., Ltd. (hereinafter referred to as Gaoyou Revitalization) and 100% of the equity of Jiangsu Xindian Investment Management Co., Ltd. (hereinafter referred to as Jiangsu Xindian), and the transferee is Shenzhen Deep Combustion Clean Energy Co., Ltd. (hereinafter referred to as "Deep Combustion Clean Energy"), and the preliminary transaction price is 323 million yuan and 224 million yuan, respectively.
At the same time, Ninghai Risheng Energy and Power Development Co., Ltd. ("Ninghai Risheng"), a wholly-owned subsidiary of Oriental Risheng, intends to transfer 100% of the equity held by Ruicheng Baosheng Power Development Co., Ltd. ("Ruicheng Baosheng") to Deep-burning Clean Energy for a transaction price of 87.64 million yuan. Its wholly-owned company, Ningbo Longhui Energy Development Co., Ltd. ("Ningbo Longhui"), also plans to transfer 100% of the shares of Shenmu Shenguang New Energy Power Co., Ltd. (hereinafter referred to as "Shenmu Shenguang") to Deep-burning Clean Energy for a transaction price of 124 million yuan.
Sell 4 Sun companies in one go, if the transaction is successfully completed, Oriental Risheng will return 758 million yuan of funds.
According to the disclosed information, the above 4 target companies are operating stably, all of them are in a profitable state, and in the first quarter of this year, each company has made a profit of millions of yuan.
Why sell a consistently profitable asset? Oriental Risheng said that this transaction is conducive to the return of funds, increase the company's operating funds, better support the company's main business operations, in line with the company's strategic planning to focus on the main business, and then optimize the asset structure.
The Reporter of Changjiang Business Daily found that this is the third large-scale disposal of assets by Oriental Risheng since June this year.
On June 17 this year, Risen Energy issued an announcement that it intended to transfer its 12.76% stake in Jiangsu Jiujiu Technology Co., Ltd. (hereinafter referred to as "Jiujiujiu") to Chengdu Kanghui for 355 million yuan.
Jiujiu is an asset purchased by Risen Energy in 2019, and the purchase price of its 12.76% stake is 350 million yuan. Previously, in 2018, the company had planned to acquire 100% of its equity and 51% of its equity, but failed.
After two years of resale, the transfer price is only 5 million yuan more than the purchase price, which is not enough for the cost of funds.
On the 26th of the same month, the company also announced that Risheng Power intends to transfer a number of power station assets, with a total transaction price of about 579 million yuan.
The most concerned and questioned is that in August this year, Risen Energy sold a 50% stake in Jiangsu Swick New Materials Co., Ltd. (referred to as Swick) for a transaction price of 1.8 billion yuan, and the takeover party was Shenzhen Gas.
Swick was also acquired by Risen Risen. In 2014, Risen Energy acquired 85% of Swick for 468 million yuan. After 7 years, the company sold it for 1.8 billion yuan, which seems to be a lot of profit.
However, the sale of Swick by Risen Oriental was questioned as a bargain.
Founded in 2005, Swick specializes in the research and development, production and sales of photovoltaic encapsulation film, the main products include EVA film, white EVA film, poe film and so on. Swick ranks second in the global photovoltaic film market, and its products are sold to more than 20 countries and regions around the world.
The valuation of the sale was $3.6 billion by Swick's 100% equity income method, while the valuation by the market method was more than $6.1 billion.
In summary, since June this year, Risen Energy disclosed assets for sale, with a total transaction price of 3.492 billion yuan.
Large-density sale of assets, Oriental Risheng said unanimously: withdraw funds, focus on the main business.
The Reporter of Changjiang Business Daily found that Oriental Risheng is indeed short of money. Since 2018, the company has been planning to raise funds through bonds, and it has failed repeatedly. This year, the issuance of 3.3 billion yuan of convertible bonds by Oriental Risheng has been basically completed, but it was suddenly rejected by the regulator, and it was helpless to return the funds to investors.
Deductions and losses are also whitewashed by selling
With the large-scale sale of assets, Risen Energy has another consideration, that is, to boost operating performance.
Founded in 2002, Risen Energy was listed on the Shenzhen Stock Exchange in 2010. The company is one of the world's top ten photovoltaic module enterprises, the main business involves photovoltaic cells and modules, new materials, photovoltaic power plants, smart lamps and new energy financial services and other five major sectors. The core business is the production and sales of solar modules, and the revenue of solar module business in 2019 accounted for 79.76% of total revenue.
The five major segments of the business originated from the previous continuous expansion and expansion. Risen Energy has successively established Sunrise Investment Company, acquired 85% of the equity of Jiangsu Swick, and also set up An Internet finance and financial leasing company to lay out the power station business, EVA adhesive film and new energy finance business. The company signed a contract with Jintan District, Changzhou, Jiangsu Province, to invest 8 billion yuan to build 5gw of battery and 5gw module production capacity, and signed a contract with Yiwu, Zhejiang Province, to invest 2 billion yuan to build a 5gw solar module production base project.
Through series expansion, Risen Energy has become a global leading company in photovoltaic modules. As of the end of June 2020, the company's annual production capacity of photovoltaic modules is 12.6gw, and the production capacity is mainly distributed in Ningbo, Zhejiang, Jintan, Zhejiang, Yiwu, Henan and other production bases.
However, large-scale expansion has not led to the sustained rapid growth of Risen Energy's operating performance. In 2017, the company's operating income exceeded 10 billion yuan for the first time, reaching 11.452 billion yuan, but the net profit was only 650 million yuan, down 5.67% year-on-year. In 2018, net profit slipped to 232 million yuan. In 2019, operating performance soared sharply, with operating income reaching 14.404 billion yuan and net profit of 974 million yuan, an increase of more than 3 times year-on-year.
By 2020, its operating income continued to climb to 16.063 billion yuan, but its net profit fell to 165 million yuan, a year-on-year decline of 83.02%; net profit after non-recurring gains and losses (referred to as non-net profit) was -135 million yuan, the first time since 2013.
Since the beginning of this year, the profitability of the main business of Oriental Risheng is still low. The third quarterly report shows that in the first three quarters, the company achieved operating income of 12.988 billion yuan, an increase of 19.93% year-on-year, and a net profit of 354 million yuan, down 45.33% year-on-year, which can be said to increase revenue without increasing profits, and deducting non-net profits is a loss of 230 million yuan.
In this regard, Oriental Risheng explained that the price of the main raw materials upstream of the module rose rapidly in stages, while the cost pressure of the photovoltaic module link was slower and more difficult to transmit to the end customer, and the gross profit margin of the sales of photovoltaic products fell sharply compared with the same period last year. In addition, the supply of silicon wafers is relatively tight, which in turn affects the company's cell and module production.
Deducting non-net profit into a loss, in order to boost stock prices and market confidence, enhance profitability. Since the beginning of this year, the company has implemented an employee stock ownership plan, granting 27.5 million shares to no more than 390 core backbones at a subscription price of 7.63 yuan per share, raising a total of 210 million yuan.
The assessment index of the employee stock ownership plan is net profit. The stocks are unlocked in three phases, and the proportion of the underlying stocks unlocked in each period is 20%, 40% and 40% respectively. The performance appraisal target is from 2021 to 2023, and the net profit is 1.2 billion yuan, 1.5 billion yuan and 2 billion yuan, respectively.
In the first half of this year, the net profit of Risen Energy was a loss of 91 million yuan. In this case, the achievement of the full-year performance target is a bit hanging.
Perhaps, based on this consideration, Oriental Risheng embarked on the road of selling assets, and soon had an effect. In the first three quarters of this year, the company achieved a net profit of 445 million yuan, of which the investment income in the third quarter reached 1.027 billion yuan.
The latest four companies planning to sell, Risen Risen Said, will generate 237 million yuan of pre-tax profits.
It can be seen that the intensive sale of assets also has the factor of assessing the performance of the shareholding plan.
However, whether the wishful thinking of Oriental Sunrise can finally be realized is still unknown.
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