On February 7, Gcl System Integration Technology Co.Ltd(002506) (002506. SZ) received a letter of concern from the Shenzhen Stock Exchange and was asked to explain the specific impact amount, calculation process and recognition basis of various factors leading to the company’s expected large loss in 2021.
According to the performance forecast of 2021 released by Gcl System Integration Technology Co.Ltd(002506) , the company expects a loss of 1.47 billion yuan to 2.28 billion yuan in 2021, and the basic earnings per share of is -0.519 yuan / share. In 2020, the loss of the company is even greater, which is -2.64 billion yuan.
Source: Gcl System Integration Technology Co.Ltd(002506) 2021 performance forecast
Gcl System Integration Technology Co.Ltd(002506) is a power equipment enterprise. According to the 2021 semi annual report, 100% of its operating revenue comes from the Cecep Solar Energy Co.Ltd(000591) industry. The photovoltaic industry chain from upstream to downstream includes silicon material, ingot / pull rod, slice, cell, module, system integration and battery development. Gcl System Integration Technology Co.Ltd(002506) is located in the middle and lower reaches of the industrial chain, and its main business is the R & D, design, production and sales of battery chips, components, system integration and other products.
The price change of upstream products in 2021 has a great impact on the performance of Gcl System Integration Technology Co.Ltd(002506) . According to the performance forecast of Gcl System Integration Technology Co.Ltd(002506) , in 2021, the supply of silicon materials in the upstream of the whole photovoltaic industry was tight, which led to the continuous high price operation of the company’s main raw material silicon chips and battery chips. The prices of EVA, backplane, glass, frame, silica gel and other auxiliary materials increased in varying degrees. The production cost of the company’s components increased rapidly, and the increase of the sales price of component terminals was less than that of raw materials, The gross profit margin of components decreased significantly. In addition, affected by covid-19 epidemic, the freight price of overseas orders has increased continuously, and the logistics cost has further eroded the profit, affecting the shipment volume of the industry. Due to the impact of the rising price of components and the rising price of superimposed inverters and supports, the construction commencement and grid connection process of EPC projects in the photovoltaic industry have been greatly delayed, affecting the bid winning and grid connection scale of the company’s EPC business. The above comprehensive reasons led to the decline of the company’s annual operating revenue and profit.
According to the financial report, Gcl System Integration Technology Co.Ltd(002506) has poor operating efficiency. The third quarter report of 2021 shows that the return on net assets is – 9%, and the total asset turnover rate is only 0.26 times, which is lower than that of most peers.
At the same time, in the past year, Gcl System Integration Technology Co.Ltd(002506) impaired the assets of batteries and components that did not meet the conditions for technological transformation and upgrading in accordance with accounting policies, and also sold some shares of power stations during the reporting period, resulting in disposal losses.
The interface news reporter found that Gcl System Integration Technology Co.Ltd(002506) sold several power stations at a loss in 2021, for example, three companies, including Guangshan Huanya New Energy Technology Co., Ltd., a wholly-owned subsidiary, were transferred to State Power Investment Group Hebei Power Co., Ltd. at a total price of 410 million yuan, The difference with the share of net assets of these subsidiaries in the current consolidated statements reached 102 million yuan.
Therefore, the attention letter requires Gcl System Integration Technology Co.Ltd(002506) to clarify the scope of assets subject to impairment, the reasons for impairment, the estimated amount of impairment of each asset, and explain whether there is a reversal of impairment in the current period. At the same time, Gcl System Integration Technology Co.Ltd(002506) it is necessary to explain whether there are significant changes in the accounting policies and determination basis of the provision for asset impairment compared with the same period of the previous year, and whether the relevant asset impairment complies with the relevant provisions of the accounting standards for business enterprises. On this basis, it is necessary to explain whether the provision for asset impairment in previous years is sufficient and whether there is earnings management through asset impairment provision. For the specific situation of disposal loss caused by the sale of power station equity during the reporting period, Gcl System Integration Technology Co.Ltd(002506) also needs further explanation.
Compared with the dismal operation of Gcl System Integration Technology Co.Ltd(002506) , the photovoltaic industry will improve as a whole in 2021. According to the installed capacity data of the national energy administration, the installed capacity of photovoltaic in China was 53gw in 2021, with a year-on-year increase of 9.96%, approaching the historical installed capacity in 2017. On a quarterly basis, the installed PV capacity of 2021q1-q4 in China reached 5.33gw, 7.68gw, 12.55gw and 27.44gw respectively. China’s distributed installed capacity was 29.20gw, a year-on-year increase of 88.39%, accounting for 55%.
According to the statistics of Central China Securities Co.Ltd(601375) analysts, among the companies that have disclosed the performance forecast in the photovoltaic equipment industry, 70% of the companies have increased their performance by more than 40%, but “the profit growth of upstream photovoltaic equipment, silicon material and silicon wafer enterprises is better than that of downstream manufacturing industry”. photovoltaic upstream enterprises such as Tongwei Co.Ltd(600438) (600438. SH), Tianjin Zhonghuan Semiconductor Co.Ltd(002129) (002129. SZ) have benefited from the rise in silicon price, and the net profit in 2021 is expected to soar by more than 200% year-on-year. While Eging Photovoltaic Technology Co.Ltd(600537) (600537. SH), which is also in the middle and lower reaches and mainly engaged in Cecep Solar Energy Co.Ltd(000591) battery components, is “in sympathy with Gcl System Integration Technology Co.Ltd(002506) and is expected to lose 600 million to 700 million yuan in 2021.
On February 7, Gcl System Integration Technology Co.Ltd(002506) closed up 2.51% and the share price was 3.27 yuan / share.
