following Sany Heavy Industry Co.Ltd(600031) , Lepu Medical Technology (Beijing) Co.Ltd(300003) , another A-share enterprise plans to list in Switzerland. So, what are the considerations of these companies and what is the special charm of the small capital market
On March 18, Gotion High-Tech Co.Ltd(002074) once fell by more than 1.8%, and quickly rose in the late trading, closing up 1.12% to 36.18 yuan / share, with a total market value of 60.23 billion yuan
The day before yesterday, Gotion High-Tech Co.Ltd(002074) announced that it planned to issue global Depositary Receipts (GDRs) overseas and list them on the Swiss stock exchange.
want a higher valuation
Gotion High-Tech Co.Ltd(002074) plans to go public in Switzerland, behind which is the upgrading of the “Shanghai London Stock connect” mechanism.
On February 11, the CSRC announced that it had revised the provisions on the supervision of the interconnection of depositary receipts business between Shanghai Stock Exchange and London Stock Exchange (for Trial Implementation), forming the provisions on the supervision of the interconnection of depositary receipts business between domestic and foreign stock exchanges.
The upgrading of the “Shanghai Luntong” mechanism is mainly reflected in three aspects: first, broaden the scope of application and include qualified listed companies of Shenzhen Stock Exchange in the domestic aspect; Overseas, expand to Switzerland and Germany. Second, allow overseas issuers to raise funds and adopt market-oriented inquiry mechanism for pricing. Third, optimize the continuous supervision arrangements, and make more optimized and flexible institutional arrangements for the continuous supervision of the disclosure contents of annual reports and the disclosure obligations of equity changes.
As for why it chose to be listed in Switzerland, Gotion High-Tech Co.Ltd(002074) Securities Department told reporters that Switzerland is the world’s largest wealth management destination. If local people want to invest in global assets, they will give priority to securities denominated in stable currency. The company chose to be listed in Switzerland in the hope of attracting such a large and well capitalized investment group. In addition, the Swiss capital market is small and sophisticated, with fewer listed companies, about more than 200, but the average market value is higher than the price, about 9.5 billion US dollars. The company hopes to obtain a higher valuation in the Swiss market.
Gotion High-Tech Co.Ltd(002074) said that the funds raised in this GDR issuance will be mainly used for the company’s international industrial layout. Up to now, the company has reached strategic cooperation with a number of international customers and signed product sales orders to gradually build a global market system. This GDR issuance and listing will help to expand the global market share of the company’s products, improve the company’s operating performance and continuously promote the healthy development of the company.
Gotion High-Tech Co.Ltd(002074) also pointed out that the overseas issuance of global depositary receipts and listing will not lead to changes in the controlling shareholders and actual controllers of the company. After the issuance, the equity distribution of the company meets the listing requirements of Shenzhen Stock Exchange and will not lead to the situation that does not meet the conditions for stock listing. The issue of GDR needs to be submitted to the board of directors and the general meeting of shareholders of the company for deliberation and approval, and can be formally implemented only after being approved by the competent regulatory authority. There is uncertainty about the final time of obtaining relevant approval or approval.
overseas business profit
GuoXuan seeks to go to sea, which is also related to the public’s shareholding.
On December 15, 2021, Gotion High-Tech Co.Ltd(002074) announced that 384 million shares were issued to Volkswagen China in a non-public manner, and the shareholding ratio of Volkswagen China increased from 4.41% to 26.47%, becoming the largest shareholder of Gotion High-Tech Co.Ltd(002074) which also made Volkswagen China the first foreign automobile company directly controlling China Shipbuilding Industry Group Power Co.Ltd(600482) battery manufacturer.
At that time, the actual controller of Gotion High-Tech Co.Ltd(002074) was still Li Zhen. However, according to the agreement, 36 months after the relevant shares of the company involved in the non-public offering and share transfer are registered in the name of Volkswagen China, or after the end of a longer period determined by Volkswagen China, if Volkswagen China withdraws its waived voting rights, Volkswagen China will become the shareholder holding the largest voting rights of GuoXuan, and the directors nominated by Volkswagen China will account for more than half of the seats on the board of directors of the company. At that time, Volkswagen China will become the controlling shareholder of Gotion High-Tech Co.Ltd(002074) company.
In overseas business, Gotion High-Tech Co.Ltd(002074) continues to usher in good news. On March 15, an investor asked about the orders with well-known automobile enterprises in the United States, Gotion High-Tech Co.Ltd(002074) replied that the cooperation between the company and the customer is progressing smoothly. It is expected to realize batch shipment in the fourth quarter of this year. In the next six years, the customer expects the total battery procurement to be no less than 200gwh, including 8gwh in 2023, 18gwh in 2024, 40gwh in 2025 and no less than 54gwh every year from 2026 to 2028.
In December 2021, Gotion High-Tech Co.Ltd(002074) announced to the public that it had signed a strategic agreement with a large listed automobile company in the United States to meet the demand of the other party for purchasing lithium iron phosphate batteries through export and new factories in the United States. However, GuoXuan has not disclosed the specific information of the American auto enterprise so far.
The reporter noted that the proportion of Gotion High-Tech Co.Ltd(002074) overseas sales revenue is increasing year by year. According to the financial report data, in 2019, 2020 and the first half of 2021, the revenue of Gotion High-Tech Co.Ltd(002074) overseas regions (including Hong Kong, Macao and Taiwan) was 22 million yuan, 159 million yuan and 168 million yuan respectively, accounting for 0.45%, 2.36% and 4.74% of the total revenue respectively.
In addition, according to the ranking of global power battery installed capacity in 2021 released by SNE research, a Korean market research institution, Gotion High-Tech Co.Ltd(002074) ranks eighth in the world with 6.4gwh According to the data of China Shipbuilding Industry Group Power Co.Ltd(600482) battery industry alliance, the Gotion High-Tech Co.Ltd(002074) installed capacity in 2021 was 8.02 GWH, a year-on-year increase of over 140%.
receivables high
But Gotion High-Tech Co.Ltd(002074) has also encountered trouble along the way. The company is falling into a battery explosion.
On the evening of November 28, 2021, oupeng power, a motorcycle pack manufacturer, held a “whistle on battery safety – explanation meeting on suspected storage quality defects of GuoXuan lithium battery”. At the meeting, oupeng power said that Gotion High-Tech Co.Ltd(002074) ‘s products had suspected safety and quality defects. In November 2020, the company used Gotion High-Tech Co.Ltd(002074) ‘s electric core raw materials. Battery deflagration and spontaneous combustion accidents occurred in the factory, causing great losses, and the company was on the verge of bankruptcy.
The next day, Gotion High-Tech Co.Ltd(002074) publicly denied the above allegations.
Gotion High-Tech Co.Ltd(002074) said that oupeng once fed back to an upstream manufacturer that the above accident was caused by the problem of the battery pack protection board, rather than the problem of the raw materials of the electric core provided by Gotion High-Tech Co.Ltd(002074) Gotion High-Tech Co.Ltd(002074) .
GuoXuan also pointed out that oupeng owed more than 20 million yuan to Hefei GuoXuan, and the company has filed a lawsuit with the court.
A person from the international finance department told the reporter that the company had set up a special negotiation group on the matter.
Over the past year, Gotion High-Tech Co.Ltd(002074) has not performed well in the secondary market. Its share price has fluctuated all the way from 40.91 yuan / share in early 2021 to the latest 36.18 yuan / share, down 11.56%.
The stock price has not improved, which has a lot to do with the performance.
In the first three quarters of 2021, Gotion High-Tech Co.Ltd(002074) achieved a revenue of 5.725 billion yuan, a year-on-year increase of 40.4%, a net profit attributable to the parent company of 678305 million yuan, a year-on-year decrease of 20.45%, and a loss of 173 million yuan after deducting non net profit.
From 2017 to 2019, Gotion High-Tech Co.Ltd(002074) net profit was 838 million yuan, 580 million yuan and 51.25 million yuan respectively, with a year-on-year decrease of 18.71%, 30.75% and 91.17% respectively. After three years of continuous decline, GuoXuan’s net profit soared by more than 190% to 150 million yuan in 2020, but it still lost 236 million yuan after deducting non profits.
High accounts receivable is also a persistent disease of Gotion High-Tech Co.Ltd(002074) . From 2017 to 2020 and the first three quarters of 2021, Gotion High-Tech Co.Ltd(002074) notes receivable and accounts receivable were 4.397 billion yuan, 6.331 billion yuan, 6.103 billion yuan, 7.014 billion yuan and 7.054 billion yuan respectively, accounting for 90.89%, 123.49%, 123.07%, 104.31% and 123% of the company’s sales respectively.
Meanwhile, from 2017 to 2020, Gotion High-Tech Co.Ltd(002074) accounts receivable accrued bad debt reserves were 308 million yuan, 522 million yuan, 721 million yuan and 1036 million yuan respectively, with the accrual ratios of 7.99%, 9.45%, 11.40% and 13.59% respectively.
The aforementioned person from Gotion High-Tech Co.Ltd(002074) Securities Department said that the company has relatively weak voice in the downstream and is also actively optimizing the customer structure.
