A series of operations to acquire lithium assets made Anshan Heavy Duty Mining Machinery Co.Ltd(002667) one of the bull stocks in 2021. However, under the constant attention and inquiry of the exchange, the company finally terminated the equity acquisition of Jiangxi Yifeng Tong\’an mineral products development Co., Ltd. (hereinafter referred to as “Jiangxi Tong\’an”) one month after the substantive obstacles to Frank trading.
terminate the acquisition of Jiangxi Tong’an
From the lowest 15.75 yuan / share on June 16, 2021 to the highest 38.91 yuan / share on September 16, 2021, due to an equity acquisition, Anshan Heavy Duty Mining Machinery Co.Ltd(002667) the stock price has increased by nearly 150% in three months.
In June Anshan Heavy Duty Mining Machinery Co.Ltd(002667) 2021, it was announced that it planned to acquire no less than 51% equity of Jiangxi Xingli Technology Co., Ltd. (hereinafter referred to as “Xingli technology”) held by Jiangxi Tong\’an with its own funds. After that, it was further announced on Anshan Heavy Duty Mining Machinery Co.Ltd(002667) August 2021 that the company signed the agreement on intention to purchase assets in cash with Gongqingcheng Qiangqiang investment partnership (limited partnership) (hereinafter referred to as “Qiangqiang investment”), Jiangxi Tong\’an, Zhang qiangliang, Zhang Hongbin and other parties, and the transaction was changed to plan to acquire 51% equity of Jiangxi Tong\’an with its own funds.
It is disclosed that Jiangxi Tong\’an holds 70% equity of Jiangxi Dingxing Mining Co., Ltd. (hereinafter referred to as “Dingxing mining”) and 49% equity of Xingli technology. Dingxing mining also holds 51% equity of Xingli technology. As of August 5, 2021, Dingxing mining holds a total of 6 Porcelain clay mining rights, and the cumulative proven resource reserves (332 + 333) in the mining boundary are about 60 million tons. The ore minerals are mainly composed of potassium albite, lithium permeable feldspar (LI), lithium mica (Li, Rb, CS), tantalum niobium manganese ore (TA, Nb), tantalum tin manganese ore (TA, Sn), etc. Xingli technology is the main operator of the supporting concentrator. At present, the raw ore processing capacity is 500000 tons / year. In addition, the capacity upgrading scheme is under planning, and the existing production line has the capacity to further expand production. After the completion of this transaction, the project is expected to mine about 1.35 million tons of raw ore, about 900000 tons of potassium albite powder and about 300000 tons of lithium concentrate, equivalent to about 23000 tons of lithium carbonate equivalent.
Anshan Heavy Duty Mining Machinery Co.Ltd(002667) at that time, it was said that through this acquisition, the company would have its own mineral resources and continue to develop upstream raw ore mining and beneficiation business on top of the original main business of mining machinery.
After the announcement on August 5, Anshan Heavy Duty Mining Machinery Co.Ltd(002667) shares closed at the daily limit in five days within six trading days, and the company also received a series of inquiries from regulators. Anshan Heavy Duty Mining Machinery Co.Ltd(002667) when replying to the exchange on the acquisition progress on December 8, Qiangqiang investment promised to coordinate the target company to obtain the updated mining license of Dingxing mine before August 10, 2021. As of the date of this reply announcement, the updated mining license has not been obtained, there are major uncertainties in the equity value evaluation of the subject company, and the preconditions for the signing of the formal agreement have not been met, which is a substantive obstacle to the transaction.
In this context, the announcement on Anshan Heavy Duty Mining Machinery Co.Ltd(002667) on January 9 shows that after the signing of the new intention agreement, the company has hired professional intermediaries to carry out due diligence, audit, evaluation and other related work on the target company, maintained active communication with the counterparty and the target company during the period, and conducted several rounds of negotiation and negotiation on the formal agreement. Due to the large fluctuation of raw ore price and external macro environment during the negotiation, both parties to the transaction have always been unable to reach an agreement on the final purchase price. At the same time, there are also substantial obstacles to the signing of a formal agreement because all the preconditions that must be met for the signing of a formal agreement are not yet available. Based on the above circumstances, both parties decide to terminate this transaction.
suspected of hyping lithium mine asset acquisition
It is noteworthy that Anshan Heavy Duty Mining Machinery Co.Ltd(002667) also promoted another lithium asset acquisition when the acquisition of Jiangxi Tong’an is not clear.
It was announced on Anshan Heavy Duty Mining Machinery Co.Ltd(002667) December 16, 2021 that it planned to acquire 70% shares of Jiangxi Jinhui renewable resources Co., Ltd. (hereinafter referred to as “Jinhui renewable”) through a wholly-owned subsidiary with its own and self raised funds of RMB 231 million. After the acquisition, Jinhui regeneration became a holding subsidiary of the listed company and was included in the scope of consolidated statements. Previously, on November 28, 2021, Anshan Heavy Duty Mining Machinery Co.Ltd(002667) said in the announcement on changes in the company’s share price that in order to further extend the industrial chain and optimize the industrial structure, the company is planning to acquire the equity of a company whose business field is non-metallic beneficiation; Mineral products processing and sales.
In the attention letter issued by Shenzhen Stock Exchange, it bluntly asked Anshan Heavy Duty Mining Machinery Co.Ltd(002667) to explain whether there is any motivation to hype the stock price.
In addition, according to the letter of concern, Anshan Heavy Duty Mining Machinery Co.Ltd(002667) the third quarter report of 2021 shows that as of September 30, 2021, the ending balance of monetary funds of the company was 242 million yuan. The company shall explain the specific capital source of the acquisition, and in combination with the company’s monetary capital, liabilities, funds required for daily operation and the current situation that the net operating cash flow is negative, explain whether the self owned funds of the listed company can meet the operating needs and whether new debt financing is required after the acquisition consideration is paid.
When the acquisition funds are not rich, Anshan Heavy Duty Mining Machinery Co.Ltd(002667) also gives a high premium.
According to the announcement, as of October 31, 2021, the ending balance of total assets of Jinhui renewable was 167 million yuan and the ending balance of total liabilities was 129 million yuan, including short-term loans of 18.93 million yuan and long-term loans of 47.41 million yuan. Jinhui renewable asset liability ratio was 77.24%. The acquisition adopts the income method as the final conclusion of the appraisal. The appraisal value is RMB 330 million, and the appraisal value-added rate is as high as 767.21%.
Under multiple backgrounds, whether Anshan Heavy Duty Mining Machinery Co.Ltd(002667) can successfully acquire Jinhui regeneration and finally realize the profit expectation that the net profit of the target company in 2022, 2023 and 2024 (calculated by deducting non recurring profits and losses) should not be less than 53 million yuan, 55 million yuan and 52 million yuan respectively, and the total profit expectation should not be less than 160 million yuan remains to be answered.
(source: Securities Times · e company)
