On March 11, Jiangsu Eastern Shenghong Co.Ltd(000301) announced two “share purchase” plans with a market value of 93.7 billion yuan: one is the shareholding increase plan of no more than 1.468 billion yuan for controlling shareholders, and the other is the employee stock ownership plan of no more than 3.26 billion yuan
Both plans will establish a collective fund trust plan or asset management plan, and acquire and hold Jiangsu Eastern Shenghong Co.Ltd(000301) shares through secondary market purchase (bidding transaction and block transaction).
It is worth noting that the total amount of funds above is no more than RMB 4.728 billion, with certain leverage: in addition to the self raised funds of relevant parties, up to half of them will be financing funds holding shareholders also promised to ensure that the annualized rate of return of employee contribution calculated by simple interest will not be less than 8% after deducting relevant taxes for the employee stock ownership plan.
In terms of share price, although the company expects the net profit in 2021 to increase by 435% – 552.44% year-on-year, the Jiangsu Eastern Shenghong Co.Ltd(000301) share price fluctuated all the way after reaching the high point of 41.3 yuan / share in September 2021. As of the closing on March 11, 2022, the company’s share price was 15.76 yuan / share, down about 59.54% from the high point in September 2021. In contrast, the company’s share price rose 499.72% in the year before the high in September 2021.
plans to “leverage” and spend no more than 4.728 billion to buy shares
As for the increase of controlling shareholders’ holdings, Jiangsu Eastern Shenghong Co.Ltd(000301) announced that the controlling shareholder Shenghong technology and some employees of its affiliated enterprises (except listed companies and holding subsidiaries of listed companies) (hereinafter referred to as “increase personnel”) intend to increase their holdings of shares of listed companies through secondary market purchase.
The shareholding increase is planned to be implemented through the establishment of special financial products, margin trading of securities companies, asset management / trust products and other ways permitted by laws and regulations. The proportion of financing funds to self raised funds shall not exceed 1:1, and the total amount of funds raised shall not exceed 1.468 billion yuan. The specific subscription scale will be determined according to the subscription of participantsP align = “center” Image Source: company announcement
In terms of employee stock ownership plan, the initial total amount of funds to be raised shall not exceed 3.26 billion yuan, of which the self raised funds of employees shall not exceed 1.63 billion yuan. It is planned to be implemented by establishing special financial products, securities company margin trading, asset management / trust products and other ways permitted by laws and regulations. The ratio of financing funds to self raised funds shall not exceed 1:1, that is, the financing amount of financial institutions shall not exceed 1.63 billion yuan.
Shenghong technology, the controlling shareholder of the company, or its parent company intends to provide joint and several guarantees for the principal and interest of securities companies, banks and other financial institutions, and provide a guarantee for the self raised funds and expected income of employees. After deducting relevant taxes, it is guaranteed that the annual yield of the part invested by employees is not less than 8% based on simple interestP align = “center” Image Source: company announcement
It is worth noting that the employee stock ownership plan announced on Jiangsu Eastern Shenghong Co.Ltd(000301) 3 March 11 is actually the second phase of the company’s employee stock ownership plan. The company last implemented the employee stock ownership plan in 2020, and the capital scale planned to buy at that time was 608 million yuan; If the self raised capital of tosheng Technology Co., Ltd. is less than the expected self raised capital of its employees at the end of the year, and the self raised capital of tosheng Technology Co., Ltd. will not be calculated at the rate of 1:1 after deducting the expected self raised capital or self raised income of its holding shareholders, which is the same as that of its employees at the end of the year.
As for capital leverage, the company said that the capital leverage ratio complies with the relevant provisions of laws, regulations and normative documents such as the guiding opinions on regulating the asset management business of financial institutions, and the specific amount is determined according to the actual contribution amount and financing amount.
estimated net profit in 2021
year on year growth of 435% – 552%
According to the annual performance forecast released on Jiangsu Eastern Shenghong Co.Ltd(000301) 1 January 5, in 2021, the net profit attributable to the parent company is expected to be 4.1-5 billion yuan, an increase of 435% – 552.44% over the same period of the previous year (after retroactive adjustment)P align = “center” Image Source: company announcement
The company gave four reasons for the pre surplus of performance: first, the performance of the industry and the company in the same period last year was greatly affected by the covid-19 epidemic. From the end of 2020, with the large-scale launch of covid-19 vaccine and the expectation of epidemic prevention and control, it boosted confidence in the recovery of economy and industry outside China.
Second, during the reporting period, the demand of the chemical industry picked up, superimposed on the upward impact of crude oil prices, the industry entered a recovery cycle and the prosperity increased.
Third, during the reporting period, the company further improved its production and operation and maintained good profitability. The production capacity of EVA photovoltaic resin produced by sierbang was stable at more than 200000 tons / year. The 200000 tons / year differential functional chemical fiber project of ganghong fiber and the 60000 tons / year pet regenerated fiber project of China perch technology were completed and put into operation in the second half of 2020, increasing the profit contribution year-on-year.
Fourth, according to the relevant provisions of the accounting standards for business enterprises, the current net profits and losses of subsidiaries from the beginning of the period to the merger date arising from business combinations under the same control belong to non recurring profits and losses. Due to the merger of sierbang under the same control, the company is expected to increase the non recurring profit and loss attributable to the shareholders of the listed company by 2.7-3.4 billion yuan in the reporting period.
multiple “big money”
Over the past year, Jiangsu Eastern Shenghong Co.Ltd(000301) announced a number of “big” merger and reorganization plans and investment plans. In March 2021, the company announced that it planned to use the funds raised by convertible bonds to increase the capital of 3.5 billion yuan to Shenghong refining and chemical ( Jiangsu Lianyungang Port Co.Ltd(601008) ) Co., Ltd. through its subsidiary. Shortly afterwards, the company announced that Shenghong refining and chemical will invest 5.573 billion yuan to build a new “2 ethylene glycol + phenol / acetone project”, which is expected to last for three years.
In May 2021, Jiangsu Eastern Shenghong Co.Ltd(000301) announced that it planned to purchase 100% equity of Sri Lanka by issuing shares and paying cash at a price of 14.36 billion yuan, and raise supporting funds of no more than 4.089 billion yuan. The matter was examined and approved by the CSRC in December 2021.
In July 2021, Jiangsu Eastern Shenghong Co.Ltd(000301) announced that the company would increase the capital of its wholly-owned subsidiary Shenghong new materials (Suqian) Co., Ltd. by 2.35 billion yuan to further enhance the market competitiveness of the company’s polyester filament. At the same time, Guowang high tech fiber (Suqian) Co., Ltd., a wholly-owned subsidiary of Shenghong new materials, invested in the construction of 500000 tons of super simulated functional fiber project with an estimated total investment of 3.958 billion yuan and a construction period of 2 years.
In November 2021, Jiangsu Eastern Shenghong Co.Ltd(000301) announced that the company would make a total investment of 2.652 billion yuan to acquire 89.996% of the property share of Jiangsu Lianyungang Port Co.Ltd(601008) Shenghong refining and chemical industry fund partnership (limited partnership).
The investment objective of the fund is limited to equity investment in Shenghong refining and Chemical Co., Ltd. and the 16 million ton refining and chemical integration project of Shenghong refining and Chemical Co., Ltd. actually operated by Shenghong refining and Chemical Co., Ltd., with the purpose of enhancing the proportion of the company’s investment equity in Shenghong refining and Chemical Co., Ltd.
In December 2021, Jiangsu Eastern Shenghong Co.Ltd(000301) announced that Jiangsu Shenghong Petrochemical Industry Development Co., Ltd., a wholly-owned subsidiary of the company, planned to acquire 132861% equity of Shenghong refining and chemical ( Jiangsu Lianyungang Port Co.Ltd(601008) ) Co., Ltd. held by Jiangsu Fuquan Shenghong refining and chemical debt to equity investment fund (limited partnership) for a consideration of 3.509 billion yuan.
On December 31, 2021, the company received the reply from China Securities Regulatory Commission, which approved the company to issue 1.052 billion shares to Shenghong Petrochemical Group Co., Ltd. and 591238 million shares to Jiangsu Lianyungang Port Co.Ltd(601008) Bohong Industrial Co., Ltd. to purchase relevant assets; The company was approved to issue shares to raise matching funds of no more than 4.089 billion yuan.
On January 12, 2022, Jiangsu Eastern Shenghong Co.Ltd(000301) announced that Jiangsu Ruibang Technology Co., Ltd., a secondary wholly-owned subsidiary of the company, will invest in the construction of phase II project with an annual output of 250000 tons of renewable differentiated and functional polyester filament and supporting texturing, with an estimated total investment of 2.838 billion yuan and a construction period of 2 years. In addition, Guowang high tech fiber (Suqian) Co., Ltd., another secondary wholly-owned subsidiary of the company, will invest in the construction of phase II super simulated functional fiber project with an annual output of 500000 tons. The total investment is expected to be 3.612 billion yuan and the construction period is two years.
