With the performance compensation of subsidiaries, Guangdong Huafeng New Energy Technology Co.Ltd(002806) ( Guangdong Huafeng New Energy Technology Co.Ltd(002806) . SZ) may further increase its profit in 2021.
On the evening of April 18, Guangdong Huafeng New Energy Technology Co.Ltd(002806) issued the announcement on the revision of performance forecast: before the revision, the company expects to realize a net profit of 23-34 million yuan in 2021; After correction, the company expects to achieve a net profit of 45 million yuan to 63 million yuan last year, almost double the original estimate.
Why revise the performance forecast Guangdong Huafeng New Energy Technology Co.Ltd(002806) said that according to the unaudited financial statements of the subsidiary Beijing Science and technology Huachuang Electric Vehicle Technology Co., Ltd. (hereinafter referred to as “science and technology Huachuang”), the company preliminarily estimated that due to the failure of science and technology Huachuang to complete the performance commitment, the compensation amount of the opposite party of the restructuring transaction to the company increased the current net profit of the company by about 37.8 million yuan.
subsidiary’s performance commitment was postponed for one year
The announcement on the planned reorganization of Huachuang technology’s assets in December 2016 is called major asset reorganization and planned suspension of Huachuang technology.
In September 2018, Guangdong Huafeng New Energy Technology Co.Ltd(002806) completed the acquisition of 100% equity of Huachuang of science and technology. It is understood that Huachuang is committed to the research and industrialization of key technologies of pure electric vehicles, and provides electronic control and drive system solutions and technical support services for new energy vehicle manufacturers.
Before the acquisition of Huachuang, the main business of Guangdong Huafeng New Energy Technology Co.Ltd(002806) was the research and development, production and sales of electrode foil. Through this acquisition, the company completed the “cross-border” to the new energy vehicle industry chain.
The above acquisition was accompanied by the performance bet agreement (and its supplementary agreement): the original shareholders of Huachuang of science and technology such as Lin Cheng promised that the net profit of Huachuang of science and technology in 2017, 2018, 2019 and 2020 would not be less than 20.5 million yuan, 40 million yuan, 52 million yuan and 68 million yuan respectively.
The above net profit also includes the government scientific research funds related to the field of new energy vehicles obtained or shared by Huachuang of science and technology in the current period and included in the current profit and loss in accordance with the accounting standards.
According to the gambling agreement and its supplementary agreement, if the accumulated actual net profit realized during the entrepreneurship performance compensation period of Polytechnic China is lower than the accumulated committed net profit, the compensation amount shall be paid to Guangdong Huafeng New Energy Technology Co.Ltd(002806) .
In 2017 and 2018, Huachuang Technology Co., Ltd. successfully fulfilled its performance commitments. However, from 2019, the net profit of Huachuang of science and technology will no longer meet the standard: in 2019, the net profit completion of Huachuang of science and technology was only over 80%; In 2020, its net profit lost 565953 million yuan.
According to the audit report audited and issued by Huaxing Certified Public Accountants (special general partnership), excluding the impact of non recurring profits and losses, profits and losses of convertible bond raised investment projects and the cost of Guangdong Huafeng New Energy Technology Co.Ltd(002806) providing financial support in addition to government scientific research funds related to the field of new energy vehicles, Huachuang of science and technology has achieved a cumulative net profit of 507519 million yuan from 2017 to 2020, while the promised net profit is 180.5 million yuan, with a difference of nearly 130 million yuan.
Relevant announcements show that in 2020, the business activities of Huachuang of science and technology were seriously affected by covid-19 pneumonia. Therefore, Guangdong Huafeng New Energy Technology Co.Ltd(002806) and the restructuring counterparty plan to postpone the performance commitment in 2020 to 2021.
performance forecast correction not only because of compensation
Why revise the performance forecast Guangdong Huafeng New Energy Technology Co.Ltd(002806) said that according to the unaudited financial statements of Huachuang of science and technology, the company preliminarily estimated that due to the failure of Huachuang of science and technology to complete the performance commitment, the amount of compensation to the company from the opposite party of the restructuring transaction increased the net profit of the company for the current period by about 37.8 million yuan.
At the same time, Guangdong Huafeng New Energy Technology Co.Ltd(002806) also mentioned that this income increases the company’s non recurring income by about 37.8 million yuan, which will not affect the net profit after deducting non recurring profits and losses.
However, from the comparison of Guangdong Huafeng New Energy Technology Co.Ltd(002806) two performance forecasts, it can be seen that the company revised the performance forecast not only because of the performance compensation of about 37.8 million yuan.
Whether the performance compensation comes or not, it will not affect the deducted non net profit of Guangdong Huafeng New Energy Technology Co.Ltd(002806) , but the company has also revised the deducted non net profit.
According to the performance forecast before the correction, the company expects to deduct non net profit loss of 1 million yuan to 5 million yuan in 2021; After correction, the company expects to deduct non net profit of 2 million yuan to 7 million yuan last year.
In 2020, Guangdong Huafeng New Energy Technology Co.Ltd(002806) net profit loss was 305 million yuan, deducting non net profit loss of 326 million yuan. Combined with the data of the company’s expected net profit of 45 million yuan to 63 million yuan in 2021 after the correction of the performance forecast, the company has realized the “turning loss into profit” of net profit and deducting non net profit last year.
Why did the performance increase in 2021 Guangdong Huafeng New Energy Technology Co.Ltd(002806) said: due to the influence of market demand, the supply of electrode foil products is in short supply, the sales revenue is about 40% higher than that of the same period of last year, and the sales unit price has also increased significantly; Since February 2021, the Beijing plant of Huachuang, a subsidiary of science and technology, has resumed normal production, and the sales revenue of new energy vehicle business has increased by about 150% over the same period in 2020.
