Recently, a news that the business tickets of 31 companies under Muyuan Foods Co.Ltd(002714) continued to be overdue pushed Muyuan Foods Co.Ltd(002714) to the forefront of public opinion again.
On December 2, Shanghai Stock Exchange publicized the list of commercial bills continuously overdue as of November 30, 2021, and a total of 31 Enterprises under Muyuan Foods Co.Ltd(002714) were listed as acceptors. According to incomplete statistics, as of November 30, 2021, the overdue balance of the above 31 acceptors of “muyuan system” was 17.0727 million yuan.
In response, Muyuan Foods Co.Ltd(002714) responded that the company was concerned that Shanghai Stock Exchange recently publicized the list of continuous overdue as of November 30, 2021. After verification, the company was unable to cash commercial tickets on time due to some ticket holders’ failure to timely initiate prompt payment application or the selected clearing method did not meet the bank’s requirements.
In response to the above problems, the company said that it had actively communicated with the holder and the bank to promote the cashing of commercial bills and protect the legitimate rights and interests of the holder. At present, the company’s production, operation and cash flow are all normal. The company has issued special management systems and measures according to relevant conditions, and will strengthen bill management in the future to avoid similar events.
When the market was concerned that the company’s commercial bills were overdue, it was announced on Muyuan Foods Co.Ltd(002714) 6 that in order to ensure that the company had sufficient production, operation and investment and construction funds, the company and its holding subsidiaries (including newly established subsidiaries or subsidiaries included in the consolidated statements) planned to apply for a total credit line of no more than RMB 70 billion from banks and other financial institutions, The specific financing amount will be determined according to the actual capital needs of the company and its holding subsidiaries for production, operation and investment and construction. The validity period of the applied credit line is from January 1, 2022 to December 31, 2022.
Business tickets of 9 companies under Muyuan Foods Co.Ltd(002714) are overdue
On December 2, the Shanghai Stock Exchange disclosed the list of overdue commercial bills as of November 30, 2021. The reporter of the Securities Times noted that in the list publicized this time, 31 companies under muyuan were listed for the first time, with a cumulative overdue amount of 68.0479 million yuan and an overdue balance of 17.0727 million yuan. The companies involved include Dongying Kenli muyuan agriculture and animal husbandry Co., Ltd., Inner Mongolia Aohan muyuan agriculture and animal husbandry Co., Ltd., Liaoning Taian muyuan agriculture and animal husbandry Co., Ltd., Laohekou muyuan agriculture and animal husbandry Co., Ltd., etc. On June 6, Muyuan Foods Co.Ltd(002714) announced that as of that day, 9 subsidiaries of the company still had overdue commercial acceptance bills totaling 7.5598 million yuan. (data as of November 30)
For the reason of overdue, Muyuan Foods Co.Ltd(002714) explained that due to the failure of some suppliers to initiate payment applications in time, the inability of a few issuing banks to conduct online clearing or the untimely online clearing, the company had the situation that the actual cashing date of commercial bills was later than the due date.
Muyuan Foods Co.Ltd(002714) said that the company has actively communicated with the holders and banks to promote the cashing of commercial bills and protect the legitimate rights and interests of the holders. At present, the company’s production, operation and cash flow are all normal. The company has issued special management systems and measures according to relevant conditions, and will strengthen bill management in the future to avoid similar events.
Muyuan Foods Co.Ltd(002714) continuous fund-raising to supplement working capital
Due to the significant increase in the stock of fertile sows and the slaughter of live pigs, the pig price has fallen rapidly since the beginning of this year, and the lowest point in the year has decreased by more than 70% compared with the beginning of the year. According to the survey of Central China Securities Co.Ltd(601375) , Muyuan Foods Co.Ltd(002714) the breeding cost in the first three quarters was about 15-16 yuan / kg, and the breeding business has been in a loss since June 2021. By the end of September, the average sales price of commercial pigs of the company was 11.49 yuan / kg, down 17.46% month on month.
Affected by the decline in pig prices, Muyuan Foods Co.Ltd(002714) achieved an operating revenue of 56.282 billion yuan in the first three quarters, a year-on-year increase of 43.71%; The net profit attributable to the parent company was RMB 8.704 billion, a year-on-year decrease of 58.53%. In terms of share price, the latest report of the company is 51.61 yuan / share, and the latest market value is 271.6 billion yuan.
At the same time, the company plans to raise an additional 6 billion yuan to supplement working capital, and the fixed increase will be fully subscribed by the company’s controlling shareholder muyuan group in cash.
For this fixed increase, Muyuan Foods Co.Ltd(002714) said that with the continuous investment in the company’s capacity expansion and the gradual growth of business scale, the company’s asset liability ratio has shown a certain upward trend since 2019. The funds raised through this non-public offering of shares are used to supplement working capital, which will effectively improve the company’s asset liability structure, enhance financial stability and prevent financial risks. At the same time, the net assets of the company will be greatly improved and the asset structure will be more stable, which is conducive to improving the company’s anti risk ability, improving the company’s solvency and subsequent financing ability, and ensuring the sustainable, stable and healthy development of the company.
“The fixed increase project can help the company meet the funds required for daily business activities with the expansion of business, enhance the strength of the company and further optimize the financial structure.” Central China Securities Co.Ltd(601375) the research points out that Muyuan Foods Co.Ltd(002714) the fixed increase is fully subscribed by major shareholders, which fully shows the actual controller’s determination to support the company and firm confidence in the future development of the company, which is conducive to ensuring the sustainable, stable and healthy development of the company, as well as transmitting positive signals to the market and minority shareholders.
It is worth mentioning that before the release of the fixed increase plan, the company also issued 9.55 billion yuan of convertible bonds and plans to invest 5.1 billion yuan in raising funds, involving 23 projects in total. The total investment of pig slaughtering project is 2.287 billion yuan, and it is planned to invest 1.9 billion yuan to raise funds, involving four projects. To repay bank loans and supplement working capital, it is planned to invest 2.55 billion yuan of raised funds.
Muyuan Foods Co.Ltd(002714) according to the financial data, the asset liability ratios of the company at the end of 2018, 2019, 2020 and September 2021 were 54.07%, 40.04%, 46.09% and 57.77% respectively. The company said that with the continuous investment in capacity expansion and the gradual growth of business scale, the company’s asset liability ratio has shown a certain upward trend since 2019.
At present, when pig enterprises are facing losses, enterprises with capital advantages can actually better survive the cold winter. Southwest Securities Co.Ltd(600369) said that the core influencing factor of the demand of the breeding industry was affected by African classical swine fever at one time, which was transformed into the restoration of the profitability of breeding enterprises in the short term. The factors affecting profitability are composed of feed cost, pig price, pig mortality and piglet cost. From the current time point, all four show a marginal improvement trend. In the future, the cost center of the industry will decline and the overall profitability will increase.
At the same time, Southwest Securities Co.Ltd(600369) also pointed out that from the perspective of long-term development, the breeding end will make it clear that capital advantage is no longer the only threshold, cost control and scientific prevention and control attitude towards epidemic diseases will work together with it to become the measurement standard of excellent and efficient breeding enterprises, and the animal protection leader with high-quality products will gain advantages.
(Securities Times)
