On December 24, Hainan Drinda Automotive Trim Co.Ltd(002865) a paper announcement let the stock bar blow up. The company, which is engaged in the business of automotive plastic interior and exterior trim parts, said it would do a big thing – invest 11.2 billion yuan to build Cecep Solar Energy Co.Ltd(000591) battery cell project.
It is worth mentioning that, as of the close of the day, the market value of the company was 10 billion yuan. According to the financial report, Hainan Drinda Automotive Trim Co.Ltd(002865) is currently in a state of loss and has a high asset liability ratio. Compared with the large project of 11.2 billion yuan, its book capital is not enough.
Some investors asked in the stock bar that night: do you have money?
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it is proposed to invest 11.2 billion yuan in Cecep Solar Energy Co.Ltd(000591) battery cell project
Hainan Drinda Automotive Trim Co.Ltd(002865) it was announced on December 24 that in order to continuously promote the company’s overall development strategy, further improve the company’s business layout, expand the business scale, meet the production capacity required by the company’s future business expansion, and make full use of the regional advantages of industrial clusters in Anhui Province, Shangrao Jietai New Energy Technology Co., Ltd. (hereinafter referred to as Jietai Technology), the holding subsidiary of the company, and the Management Committee of Anhui Lai’an Chahe Economic Development Zone signed the investment cooperation agreement for high efficiency Cecep Solar Energy Co.Ltd(000591) battery production base project on December 24. The total investment is planned to be about 11.2 billion yuan, including about 7 billion yuan in fixed assets to build 16GW high efficiency Cecep Solar Energy Co.Ltd(000591) battery project.
According to the announcement, the project is implemented in two phases. Phase I is 8GW, with a planned total investment of about 5.6 billion yuan, including fixed asset investment of about 3.5 billion yuan and planned land of about 400 mu; The total investment of phase II is about 5.6 billion yuan, of which the investment in fixed assets is about 3.5 billion yuan and the planned land is about 300 mu.
The announcement disclosed that the phase I project will start construction within one month after the agreement is signed and meets the commencement conditions, be completed and put into operation within 6-8 months, and reach production within 12 months. After the first phase of the project is expected to be completed, according to the existing market price, the output value in the first and second years is not less than 9 billion yuan, and the output value in the third year is not less than 8 billion yuan. From the first year to the fifth year, the average annual output shall not be less than 8GW, and the average annual tax shall be 250 million yuan.
The biggest problem before Hainan Drinda Automotive Trim Co.Ltd(002865) is how to raise funds. According to the third quarterly report, as of the end of the reporting period, the company’s monetary capital was only 59.5656 million yuan. At the same time, the company’s performance is worrying and its asset liability ratio is also high. In the first three quarters, Hainan Drinda Automotive Trim Co.Ltd(002865) lost 80.2842 million yuan, and the asset liability ratio has exceeded 70%.
Even if Hainan Drinda Automotive Trim Co.Ltd(002865) holds 51% of Jietai technology shares, phase I project Hainan Drinda Automotive Trim Co.Ltd(002865) alone needs to invest 2.856 billion yuan.
Hainan Drinda Automotive Trim Co.Ltd(002865) indicates that the investment funds of the above projects are from the company’s own or self raised funds; The investment of the project is large, and the company will implement it by stages according to the strategic development plan and the actual situation. The terms of government agency construction will correspondingly reduce the pressure of capital investment in the early stage of the company.
The holding subsidiary borrowed money to acquire
It is worth noting that Jietai technology, a subsidiary of Hainan Drinda Automotive Trim Co.Ltd(002865) which signed the agreement on the 11.2 billion yuan Cecep Solar Energy Co.Ltd(000591) battery project, borrowed money to buy it not long ago.
According to public information, Jietai technology was established in 2019 and its main business is the production and manufacturing of Cecep Solar Energy Co.Ltd(000591) photovoltaic cells. In 2020, the company’s operating revenue will be 2.661 billion yuan; The net profit is -90.5881 million yuan; The net profit excluding asset impairment loss was 152 million yuan.
The original controlling shareholder of Jietai technology is Shangrao Hongfu photovoltaic industry center (hereinafter referred to as Hongfu photovoltaic), holding 81.32% of its shares, and the actual controller is the Management Committee of Shangrao economic and Technological Development Zone; The former second largest shareholder was Zhejiang Supor Co.Ltd(002032) group, a related party of Hainan Drinda Automotive Trim Co.Ltd(002865) , Zhejiang Supor Co.Ltd(002032) holding 15.03% shares of Jietai technology.
In May this year, Hongfu PV listed and transferred 47.35% equity of Jietai technology in Jiangxi property exchange, and the base price for listing and transfer was 1.331 billion yuan. Through the auction, Hainan Drinda Automotive Trim Co.Ltd(002865) obtained 47.35% equity of Jietai technology. At the same time, Hainan Drinda Automotive Trim Co.Ltd(002865) transferred the 3.65% shares held by Rao Zhanhong, the former third largest shareholder of Jietai technology and the employee stock ownership platform of Jietai technology.
After the transfer of the above shares, Hainan Drinda Automotive Trim Co.Ltd(002865) will hold 51% equity of Jietai technology and become its controlling shareholder. It is worth noting that most of the funds in this transaction were borrowed by Hainan Drinda Automotive Trim Co.Ltd(002865) .
Source: company announcement
According to relevant announcements, the total consideration of this transaction is RMB 1.434 billion. Among them, 600 million yuan was Hainan Drinda Automotive Trim Co.Ltd(002865) borrowed from the controlling shareholder Jindi technology and Yang’s investment, who acted in concert with Jindi technology; 600 million yuan is the M & a loan borrowed from the bank; The remaining 234 million yuan is Hainan Drinda Automotive Trim Co.Ltd(002865) self owned funds and other self raised funds.
share price nearly tripled in half a year
According to public information, Hainan Drinda Automotive Trim Co.Ltd(002865) previously its main business was the R & D, production and sales of automotive plastic interior and exterior trim parts, covering automotive dashboard, bumper, door guard, assembly integration, etc. Since its listing in 2017, Hainan Drinda Automotive Trim Co.Ltd(002865) has continued to decline in performance and turned into a loss this year. The net profits of the company from 2017 to 2020 and the first three quarters of 2021 were 67.4426 million yuan, 41.8317 million yuan, 17.2271 million yuan, 13.5464 million yuan and – 80.2842 million yuan respectively.
Although Hainan Drinda Automotive Trim Co.Ltd(002865) has to borrow money everywhere to get together the money to buy 51% equity of Jietai technology, cutting into the photovoltaic track under the loss of the original main business still makes the share price of Hainan Drinda Automotive Trim Co.Ltd(002865) sit on the “rocket”. Since the announcement of participating in the bidding at the end of June, Hainan Drinda Automotive Trim Co.Ltd(002865) share price has risen nearly three times.
The acquisition of Jietai technology is also Hainan Drinda Automotive Trim Co.Ltd(002865) a self-help in the face of continuous decline in performance. Hainan Drinda Automotive Trim Co.Ltd(002865) said that the acquisition of Jietai technology enabled the company to achieve diversified business layout, and its main business entered the field of photovoltaic cells from automotive plastic interior and exterior trim parts. Jietai technology will become the holding subsidiary of the company, and its operating performance will be included in the scope of the company’s consolidated financial statements, so that the company’s business scale and profitability will be significantly improved.
(China Securities Journal)
