On February 17, Ningbo Tuopu Group Co.Ltd(601689) (601689, SH) disclosed the reply to the feedback of convertible bond application documents and replied to the matters concerned by the CSRC one by one. The Ningbo Tuopu Group Co.Ltd(601689) plans to raise no more than 2.5 billion yuan through the issuance of convertible bonds for the construction project of 1.5 million sets of lightweight chassis system and 3.3 million sets of lightweight chassis system, totaling 4.8 million sets.
In 2020, Ningbo Tuopu Group Co.Ltd(601689) also initiated a fixed increase, which was completed in February 2021. It raised 2 billion yuan for a total of 4.8 million chassis systems, and it is planned to build a production capacity of 2.88 million chassis systems in 2022. The fixed increase fund-raising project has not been completed. Why did Ningbo Tuopu Group Co.Ltd(601689) choose to reissue convertible bonds to build new production capacity?
The reporter of the daily economic news called the Ningbo Tuopu Group Co.Ltd(601689) secretary office on the afternoon of February 18, but the phone could not be connected.
capacity expansion
According to the feedback of convertible bonds, Ningbo Tuopu Group Co.Ltd(601689) the original chassis system has a capacity of 1.8 million sets, and the fixed additional capacity in 2020 will be 4.8 million sets after all. The convertible bond fund-raising will build another 4.8 million sets of production capacity. In short, Ningbo Tuopu Group Co.Ltd(601689) fixed growth and convertible bonds will form a capacity of 5.33 times the original capacity.
Therefore, the CSRC requires Ningbo Tuopu Group Co.Ltd(601689) to explain the rationality and feasibility of the implementation of the convertible bond fund-raising project, whether the amount of fund-raising exceeds the needs of the project, whether the new production capacity can be effectively digested, and whether the implementation risks of the raised investment project are fully disclosed
source: screenshot of announcement
Ningbo Tuopu Group Co.Ltd(601689) according to the fixed increase plan, there are mainly two fixed increase projects, namely Hangzhou Bay phase II lightweight chassis system module project and Hunan factory lightweight chassis system module project. After the completion of the two major projects, 1.6 million sets of lightweight subframes, 1.6 million sets of lightweight suspension systems and 1.6 million sets of lightweight alloy steering knuckles will be formed. Generally speaking, the lightweight chassis system includes subframe, suspension system and steering knuckle, which means that 1.6 million vehicles can be equipped after the fixed increase project is completed.
The convertible bond fund-raising project is also divided into two parts. The construction project of 1.5 million sets of lightweight chassis system plans to invest 721 million yuan, which is located in Hangzhou Bay New Area, Ningbo; The construction project of 3.3 million sets of lightweight chassis system plans to invest 1.779 billion yuan. Both projects are implemented by top electric vehicle thermal management system (Ningbo) Co., Ltd., which is a wholly-owned subsidiary of Ningbo Tuopu Group Co.Ltd(601689) .
According to the announcement, the convertible bond fund-raising project is also to build 1.6 million sets of lightweight subframes, 1.6 million sets of lightweight suspension systems and 1.6 million sets of light alloy steering knuckles, that is, supporting 1.6 million vehicles.
Ningbo Tuopu Group Co.Ltd(601689) believes that both the traditional fuel vehicle, hybrid vehicle and new energy vehicle industries have a rapidly growing demand for vehicle lightweight. At present, vehicle lightweight can effectively improve the mileage of new energy vehicles.
Ningbo Tuopu Group Co.Ltd(601689) the original production capacity is 1.8 million sets of lightweight chassis system. According to this calculation, 600000 new energy vehicles can be equipped. Fixed value-added projects and convertible bond projects are respectively equipped with 1.6 million vehicles, with a total of 3.2 million new energy vehicles. When all production capacity is completed, Ningbo Tuopu Group Co.Ltd(601689) lightweight chassis system will be able to support 3.8 million new energy vehicles.
Although China’s production and sales of new energy vehicles increased rapidly in 2021, the production and sales of new energy vehicles reached 3.545 million and 3.521 million respectively.
how to digest?
What makes Ningbo Tuopu Group Co.Ltd(601689) confident is the future of new energy vehicles. It believes that the current production capacity of the company and the production line under construction of the previous raised investment project (i.e. fixed increase project) are still unable to meet the rapidly growing market demand. In order to enable the company to have enough capacity to support the whole vehicle factory and make new orders fall smoothly, the company urgently needs to continue to expand production in the field of lightweight chassis and reserve capacity to meet the strong demand of the future market.
The confidence of Ningbo Tuopu Group Co.Ltd(601689) comes from the rapid development of new energy vehicle market, especially the development of its largest customer a. Ningbo Tuopu Group Co.Ltd(601689) did not specifically specify which auto manufacturer customer a is, but revealed that customer a is “the world’s leading enterprise of new energy vehicles” and “the continuous release of production capacity of Shanghai Super factory”.
In 2020, Ningbo Tuopu Group Co.Ltd(601689) will have a production capacity of 1.8 million units and an output of 1.6695 million units. According to the above (1:1:1) ratio, about 556500 new energy vehicles will be equipped. According to evtank statistics, the global sales of new energy vehicles reached 3.311 million in 2020. According to this calculation, Ningbo Tuopu Group Co.Ltd(601689) accounts for about 16.81%.
Evtank predicts that the global sales of new energy vehicles will reach 18 million in 2025. Without convertible bond financing, the production capacity of Ningbo Tuopu Group Co.Ltd(601689) will be 6.6 million sets in 2025, and 2.2 million vehicles will be equipped. Assuming that the listed company has full production, the market share is only 12.22%.
After the convertible bond financing, the production capacity of Ningbo Tuopu Group Co.Ltd(601689) is expected to rise to 9.96 million units in 2025, and 3.32 million vehicles will be equipped. According to this calculation, the market share after full production is about 18.44%.
The company is in urgent need of capacity growth of about 6.85 million sets in September 2021, which is about 6.85 million sets of capacity to meet the current market demand. It is believed that the company’s capacity utilization rate has broken through the current market demand of 6.01 million sets in January 2029.
In addition, from January to September 2021, Ningbo Tuopu Group Co.Ltd(601689) sales to a customers accounted for 41.47%. Ningbo Tuopu Group Co.Ltd(601689) believes that with the continuous selling of relevant models of customer a and the continuous release of the production capacity of Shanghai Super factory, the sales revenue of the company to customer a also increases rapidly.
