On February 15, the photovoltaic glass faucet Flat Glass Group Co.Ltd(601865) ushered in a huge lifting of the ban. The number of Flat Glass Group Co.Ltd(601865) shares lifted this time is 1.159 billion, accounting for 53.99% of the total share capital of the company. Based on the latest market price, the market value of the lifted shares is as high as 50.544 billion yuan, accounting for 50% of the total market value of the lifted shares this week.
As of the closing on February 15, Flat Glass Group Co.Ltd(601865) reported 43.61 yuan / share, up 5.93%, with a total market value of 93.626 billion yuan.
floating profit nearly 21 times
Flat Glass Group Co.Ltd(601865) the shares lifted this time are the company’s initial public offering of restricted shares, involving a total of 8 shareholders, all natural persons, namely Ruan Hongliang, Ruan Zeyun, Jiang Jinhua, Zhao Xiaofei, Tao Hongqiang, Tao Hongzhu, Jiang Jinlan and Zhu Haiou.
Among them, Ruan Hongliang, Ruan Zeyun, Jiang Jinhua and Zhao Xiaofei are the actual controllers of Flat Glass Group Co.Ltd(601865) , ranking among the chairman, Secretary of the board of directors, vice chairman and deputy general manager of the company respectively. Flat Glass Group Co.Ltd(601865) is a typical family business. Ruan Hongliang and Jiang Jin are husband and wife of Huawei. Ruan Zeyun is their daughter and Zhao Xiaofei’s spouse; Tao Hongqiang, Tao Hongzhu and Zhu Haiou are Ruan Hongliang’s cousin, cousin and nephew respectively, and Jiang Jinlan is Jiang Jinhua’s sister.
Specifically, Ruan Hongliang, Ruan Zeyun and Jiang Jinhua all lifted more than 300 million shares, 439 million shares, 351 million shares and 324 million shares respectively, accounting for 20.46%, 16.33% and 15.1% of the total share capital of Flat Glass Group Co.Ltd(601865) , with a market value of 19.145 billion yuan, 15.307 billion yuan and 14.13 billion yuan. At the beginning of listing, the issue price of Flat Glass Group Co.Ltd(601865) was 2 yuan / share. Based on the latest market price of 43.61 yuan / share, the floating profit of the original shareholders of the company was nearly 21 times.
Flat Glass Group Co.Ltd(601865) landed on the A-share main board in February 2019 and is located in Jiaxing, Zhejiang Province. It focuses on the R & D, production and sales of photovoltaic glass, float glass, engineering glass and household glass, as well as the mining and sales of quartz ore for glass and the construction of EPC photovoltaic power station project.
The market’s response to the massive lifting of the ban on Flat Glass Group Co.Ltd(601865) is honest. Since the opening of the market in the year of the tiger, Flat Glass Group Co.Ltd(601865) share price has “fallen endlessly”, from the high of 50.89 yuan / share on February 7 to 39.35 yuan / share on February 14, with the highest decline of 22.68%.
Investor panic is not groundless. In February 2020, when the ban on the first batch of restricted shares was lifted, 9 directors, supervisors and other shareholders collectively threw out the reduction plan. The nine shareholders completed the reduction plan three months in advance. In April 2021, eight directors, supervisors and other shareholders cashed out again, and the reduction plan was quickly completed within one month. In August of that year, Flat Glass Group Co.Ltd(601865) an executive and a specific shareholder proposed a reduction plan.
acquisition of two mining enterprises
At the same time, Flat Glass Group Co.Ltd(601865) is also releasing good news. According to the announcement on February 13, Flat Glass Group Co.Ltd(601865) plans to purchase 100% equity of Anhui Dahua Oriental Mining Co., Ltd. (hereinafter referred to as “Dahua mining”) held by Anhui fengsha Mining Group Co., Ltd. (hereinafter referred to as “fengsha group”) and 100% equity of Anhui Sanli Mining Co., Ltd. (hereinafter referred to as “Sanli mining”), with a total transaction price of RMB 3.344 billion, Including the equity transfer price of 2.805 billion yuan paid for the transfer of the underlying equity and the debt of 539 million yuan owed by the underlying company to the counterparty fengsha group.
It is disclosed that Dahua mining holds the mining right of quartzite for glass with an annual output of 500000 tons, and Sanli mining holds the mining right of quartzite for glass with an annual output of 1.9 million tons. Flat Glass Group Co.Ltd(601865) said that the acquisition of the equity of the above two companies will help listed companies improve the reserves of quartzite resources for glass, help to ensure the sand demand and quality safety of the production base, reduce the dependence on external purchase of quartz sand, and reduce the impact of fluctuations in quartz sand raw materials on the company’s product costs and performance.
It should be noted that Flat Glass Group Co.Ltd(601865) another announcement was issued on the same day that after comparing the relevant financial indicators of the underlying assets with the financial indicators of the company, this equity acquisition does not constitute a major asset restructuring, and the company plans to terminate the major asset restructuring procedures and continue to promote the transaction. In this regard, the Shanghai Stock Exchange issued an inquiry letter to Flat Glass Group Co.Ltd(601865) on February 15.
In fact, from November 27, 2021 to January 27, 2022, Flat Glass Group Co.Ltd(601865) disclosed the progress announcement of major asset restructuring for three times, saying that the exchange was predicted to meet the standard of major asset restructuring. The Shanghai stock exchange requires to explain whether the information disclosure of early restructuring progress is not timely and accurate in combination with relevant situations; Verify whether relevant parties have undisclosed interest arrangements and whether there are situations such as avoiding major asset restructuring.
The reporter noted that Flat Glass Group Co.Ltd(601865) announced the above acquisition plan in October last year, and the estimated transaction value at that time was no more than 3.65 billion yuan. But the deal is fraught with doubts.
First, where did the money come from? According to the announcement, Flat Glass Group Co.Ltd(601865) plans to purchase assets by paying cash and assuming debt. As of the end of September 2021, the monetary capital on the company’s book is only 1.976 billion yuan, and the capital gap is not small.
The second is the profitability of the target. In 2021, the net profit of Dahua mining was 22.3974 million yuan and that of Sanli mining was 130 million yuan. However, in the previous two fiscal years, the revenue of Dahua mining was 0 and was in a state of loss; Sanli mining lost 146 million yuan in 2019, turned losses into profits in 2020, and turned into losses in the first three quarters of 2021.
The third question is aimed at the counterparty of Flat Glass Group Co.Ltd(601865) . Sanli mining and Dahua mining were established in 2003 and 2011 respectively, but fengsha group only held Sanli mining in August 2021, and its shareholding in Dahua mining increased from 51% in November 2019 to 100%. In other words, fengsha group plans to transfer to Flat Glass Group Co.Ltd(601865) only two months after it achieved 100% control of the two companies.
The above-mentioned questions attracted the questioning of the regulators. On November 9, 2021, the Shanghai Stock Exchange issued an inquiry letter. After several delays, Flat Glass Group Co.Ltd(601865) handed in a reply on December 14. Flat Glass Group Co.Ltd(601865) said that it will comprehensively use its own funds, bank M & A loans and other channels to raise funds, which will not have a significant impact on the company’s working capital, current ratio, asset liability ratio and subsequent normal operations. In addition, the underlying loss was caused by the suspension of business for rectification. As for the reason why the counterparty is eager to change hands, Flat Glass Group Co.Ltd(601865) said that the main reason is that fengsha group failed to obtain the approval of M & a loan after purchasing the above-mentioned subject equity. In order to avoid the risk of default and reduce losses, it has the intention to sell equity.
chasing faith light energy
In the field of photovoltaic glass, Flat Glass Group Co.Ltd(601865) and Xinyi solar energy have formed a duopoly situation. Although there is little difference in market value between the two, there is a great differentiation in profitability. In the first half of 2021, the net profit attributable to the parent company of Xinyi solar energy was HK $3.07 billion (about RMB 2.5 billion), with a net interest rate of 42.17%, while Flat Glass Group Co.Ltd(601865) was only 1.26 billion, with a net interest rate of 27.1%.
Flat Glass Group Co.Ltd(601865) only bite Xinyi light energy in terms of production capacity. By the end of 2020, the daily melting capacity of global photovoltaic glass of Xinyi solar energy was 9800 tons and Flat Glass Group Co.Ltd(601865) was 6400 tons. In 2021, Xinyi solar energy will expand its production by 4000 tons / day in total, and Flat Glass Group Co.Ltd(601865) will achieve reverse excess, with a total expansion of 5800 tons / day. It is estimated that the optical production will be expanded by 4800 tons / day in 2025, but the information production is expected to be expanded by 8600 tons / day in 2025.
According to the third quarterly report, Flat Glass Group Co.Ltd(601865) in the first three quarters of 2021, the revenue was 6.337 billion yuan, a year-on-year increase of 57.78%, and the net profit attributable to the parent company was 1.717 billion yuan, a year-on-year increase of 111.5%.
Huaxin securities research report pointed out that the gross profit margin of photovoltaic glass in the first half of Flat Glass Group Co.Ltd(601865) 2021 was 50.3%, with a gap of more than 10% with the cost of second and third tier enterprises, which is at the leading level in the industry, mainly due to the company’s low cost of raw materials, the application of large kilns and the know-how advantages under long-term accumulation and iteration. As the downstream is expected to gradually warm up in 2022, the permeability of wide glass is further improved, and the restrictions of energy consumption and raw materials on the expansion of second and third tier enterprises are strengthened, the company is expected to maintain high growth in the next two years, with a high probability of exceeding expectations.
However, Xinyi light energy is impacting upstream. In December 2021, Xinyi solar energy announced that it would establish a joint venture with Xinyi Glass with a maximum investment of 3.3 billion yuan to engage in the production of polycrystalline silicon. It would build a polycrystalline silicon production plant in Qujing City, Yunnan Province, China, with an estimated annual capacity of 60000 tons. Then, it could choose to increase the estimated annual capacity to 200000 tons in different stages, and the annual capacity of white carbon black was 10000 tons. The construction is expected to be completed within two years.
