On the evening of February 15, Changyuan Technology Group Ltd(600525) (600525, SH; yesterday’s closing price was 5.4 yuan) announced that the board meeting of the company passed a proposal on February 15, agreeing to terminate the company’s non-public offering of A-Shares in 2021. The listed company said that the termination of the non-public offering of A-Shares is a prudent decision made in combination with the actual operation of the company and the company’s development plan, and will not have an adverse impact on the company’s production, operation and business development.
The reporter of “daily economic news” noted that this is the third failure of fixed growth in Changyuan Technology Group Ltd(600525) nearly 10 years.
Changyuan Technology Group Ltd(600525) terminate fixed increase
According to the announcement, on February 25, 2021, the Changyuan Technology Group Ltd(600525) extraordinary general meeting of shareholders approved the company’s application for non-public issuance of a shares, and the raised funds shall not exceed 901 million yuan to invest in the expansion projects of consumer electronic intelligent testing equipment, semiconductor mounting and testing equipment. As of February 15, 2022, the company has not submitted relevant application materials to the CSRC.
Why terminate the additional issuance? Changyuan Technology Group Ltd(600525) said that the company comprehensively considered many factors such as business conditions and the company’s development strategy, and finally decided to terminate the additional issuance after careful research and demonstration with intermediaries. The independent directors of the company also agreed to terminate the additional issuance and said that the termination of the additional issuance will not have an adverse impact on the company after careful decision-making, and there is no situation damaging the interests of the company and shareholders, especially minority shareholders.
The reporter of “daily economic news” noted that this is the third additional issuance failure in Changyuan Technology Group Ltd(600525) nearly 10 years. According to the information, in October 2013, Changyuan Technology Group Ltd(600525) plans to make a non-public offering of 150 million shares to the equity investment fund to be established and managed by Chuang Dongfang, the senior managers and core personnel of the company and its holding subsidiaries (excluding the issuer’s supervisors).
On December 16 of that year, Changyuan Technology Group Ltd(600525) received the notice on examination of termination of administrative license application from the CSRC, and the CSRC terminated the examination of the company’s application documents for non-public offering of shares in accordance with the relevant provisions of Article 20 of the provisions on the implementation procedures of administrative license of China Securities Regulatory Commission.
On February 5, 2016, Changyuan Technology Group Ltd(600525) disclosed the plan for non-public offering of A-Shares in 2016 (Draft), which plans to issue no more than 65.1466 million shares to no more than ten (including ten) specific objects including the company’s shareholders Shenzhen Woer Heat-Shrinkable Material Co.Ltd(002130) .
On March 14, 2017, Changyuan Technology Group Ltd(600525) announced that it terminated the additional issuance and applied to withdraw relevant documents. The company said that due to the expiration of the validity period of relevant resolutions, and considering the current capital market environment, financing opportunities, regulatory policy requirements, business development planning and other factors, the company decided to withdraw its application.
the company’s performance has been sluggish in recent years
Changyuan Technology Group Ltd(600525) said in the announcement of terminating the third additional issuance that the company’s current production and operation activities are normal, and the company will further implement the industrial focus and implement the “new main and auxiliary” development strategy focusing on smart grid equipment system and energy technology equipment and technical services, supplemented by consumer electronic smart equipment.
Changyuan Technology Group Ltd(600525) further said that the termination of the non-public offering of A-Shares will not have an adverse impact on the company’s production, operation and business development, and there is no situation damaging the interests of the company and all shareholders.
On January 29, 2022, Changyuan Technology Group Ltd(600525) released the announcement of performance loss in advance. The company said that the main reasons for performance loss in 2021 include the decline of operating revenue of intelligent equipment sector, the provision for goodwill impairment, asset impairment and investor claim litigation compensation.
The announcement shows that in 2021, the company realized a net profit of – 1.15 billion yuan to – 880 million yuan attributable to the shareholders of the listed company. It is expected that the net profit attributable to the shareholders of the listed company excluding non recurring profits and losses in 2021 will be – 1.26 billion yuan to – 1 billion yuan. At the same time, the net profit attributable to the shareholders of the listed company in the previous year was 131 million yuan, The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 104 million yuan.
The reporter of the daily economic news read the annual report of Changyuan Technology Group Ltd(600525) 2017 to 2020. From 2017 to 2020, the company’s operating revenue was 7.131 billion yuan, 7.137 billion yuan, 6.415 billion yuan and 6.188 billion yuan respectively; The net profits attributable to the shareholders of the listed company were – 74 million yuan, 112 million yuan, – 877 million yuan and 131 million yuan respectively; The net profits attributable to shareholders of listed companies after deducting non recurring profits and losses were – 630 million yuan, – 1.19 billion yuan, – 581 million yuan and 104 million yuan respectively.
According to the 2020 annual report, Changyuan Technology Group Ltd(600525) is mainly engaged in smart grid equipment and energy Internet technology services, smart devices in consumer electronics and other fields, materials related to electric vehicles and other functional materials, accounting for 59.55%, 37.67% and 1.56% respectively.
